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Attached is a spreadsheet with the selected financial statements for Nike for a 3-year period. Using your analysis of this material, present your overall conclusions about the company. Specifically, you should

1. Read the financial statements carefully and generate three general observations about each financial statement. These observations should be strictly factual and neutral as to whether the statement is positive or negative.

2. For each year, calculate the complete set of ratios

3. Give your overall ratings and recommendations for the company as follows. Support each rating and recommendation with a one sentence explanation.

a) an overall company rating on the following scale: Excellent, Very Good, Good, Fair, or Poor (choose one).

b) a recommendation you would make about this company to a prospective creditor: Strongly Recommend, Recommend, or Not Recommend (choose one).

c) a recommendation you would make about this company to a prospective equity investor: Strongly Recommend, Recommend, or Not Recommend (choose one).

B C D E F 1 NIKE Income Statement 2 3 5 4 3 4 5 Sales 6 Cost of Goods Sold 7 Sell and Admin Expense 8 EBIT 9 Interest Expense 10 Income Tax Expense 11 NI $3,003,653 (1,850,530) (664,061) 489,062 (27,316) (174,700) $287,046 $2,242,508 (1,384,172) (454,521) 403,815 (10,457) (150,400) $242,958 $1,714,252 (1,074,831) (354,825) 284,596 (13,949) (103,600) $167,047 12 13 14 B c D E F 1 NIKE Balance Sheet 2 3 5 4 3 2 4 5 Cash 6 Accounts Receivable 7 Inventories 8 Other Current Assets 9 Current Assets 10 PP&E, Net 11 Other Non-Current Assets 12 Total Assets $119,804 521,588 586,594 52,274 1,280,260 292,463 135,707 $1,708,430 $90,449 400,877 309,476 36,880 837,682 159,664 97,206 $1,094,552 $85,749 296,350 222,924 33,358 638,381 89,982 97,047 $825,410 $75,357 258,393 198,470 21,362 553,582 57,703 97,810 $709,095 13 14 Accounts Payable 15 Notes Payable 16 Other Current Liabilities 17 Current Liabilities 18 Long-Term Debt 19 Total Liabilities 20 Common Stock 21 Retained Earnings 22 Shareholders' Equity 23 Total Equities $165,912 300,364 162,196 628,472 29,992 675,641 87,557 945,232 1,032,789 $1,708,430 $107,423 31,102 134,636 273,161 25,941 310,333 81,456 713,994 784,219 $1,094,552 $71,105 39,170 105,628 215,903 34,051 263,606 77,098 498,358 561,804 $825,410 $50,288 135,215 69,263 254,766 30,306 297,321 72,606 351,417 411,774 $709,095 24 25 PP&E, Gross 26 397,601 238,461 154,314 112,022 27 28 29 A B C D E F 1 NIKE Statement of Cash Flows 2 3 5 4 3 $287,046 34,473 (119,958) (274,966) 58,489 29,082 14,166 $242,958 17,130 (104,527) (86,552) 36,318 21,748 127,075 $167,047 14,775 (37,957) (24,454) 20,817 29,213 169,441 4 5 Operations 6 Net Income 7 Depreciation 8 (Increase) Decrease in Receivables 9 (Increase) Decrease in Inventories 10 Increase (Decrease) in Accounts Payable 11 Other Operating Activities 12 Net Cash Flow from Ops 13 14 Investing 15 Net Cash Flow From Investing 16 17 Financing 18 Change in Short-Term Borrowing 19 Change in Long-Term Borrowing 20 Issue of Capital Stock 21 Dividends 22 Other Financing Activities 23 Net Cash Flow from Financing 24 Net Change in Cash 25 26 (211,187) (89,429) (40,471) 269,262 (4,825) 3,211 (39,114) (2,158) 226,376 $29,355 (8,068) (1,202) 1,652 (28,092) 2,764 (32,946) $4,700 (96,045) (4,019) 2,517 (20,510) (521) (118,578) $10,392 27 28