Question
Name of the company: NIKE INC. BALANCE SHEET Report date : MAY 31,2019 & 2018 a. Answer the following questions. Use complete sentences, and explain
Name of the company: NIKE INC.
BALANCE SHEET
Report date : MAY 31,2019 & 2018
a. Answer the following questions. Use complete sentences, and explain your answers by reference to the information you gained from the vertical and horizontal analysis.
(1) In which assets does the company have the most significant investment?
(2) Which assets had the most significant increase/decrease during the two-year period.
(3) Is the company financially primarily with debt or equity?
(4) Is the debt primarily short-term or long-term?
Debt is primarily long-term.
(5) Did the company increase/decrease its outstanding debt during the two-year
period and by what percent.
(6) Evaluate the companys debt-paying ability. Refer to the information
obtained in the vertical and horizontal analysis and the previous questions.
| Nike Inc. | ||||
| Balance Sheet for the Twelve Months Ended May 31 | ||||
|
| Increase (Decrease) during 2019 | |||
| Particulars | 2019 | 2018 | Amounts | % |
| Cash & equivalents | 4,466,000 | 4,249,000 | 217,000 | 5.11 |
| Short-term investments | 197,000 | 996,000 | (799,000) | (80.2) |
| Accounts receivable, net | 4,272,000 | 3,528,000 | 744,000 | 21.1 |
| Inventories | 5,622,000 | 5,261,000 | 361,000 | 6.86 |
| Prepaid expenses & other current assets | 1,968,000 | 1,130,000 | 838,000 | 74,16 |
| Total current assets | 16,525,000 | 15,134,000 | 1,391,000 | 9.19 |
| Total property, plant & equipment, gross | 9,469,000 | 8,891,000 | 578,000 | 6.5 |
| Less: accumulated depreciation | 4,725,000 | 4,437,000 | 288,000 | 6.5 |
| Property, plant & equipment, net | 4,744,000 | 4,454,000 | 290,000 | 6.5 |
| Identifiable intangible assets, net | 283,000 | 285,000 | 2,000 | 0.7 |
| Goodwill | 154,000 | 154,000 | 0 | 0 |
| Deferred income taxes & other assets | 2,011,000 | 2,509,000 | (498,000) | (19.85) |
| Total assets | 23,717,000 | 22,536,000 | 1,181,000 | 5.24 |
| Current portion of long-term debt | 6,000 | 6,000 | 0 | 0 |
| Notes payable | 9,000 | 336,000 | (327,000) | (97.32) |
| Accounts payable | 2,612,000 | 2,279,000 | 333,000 | 14.61 |
| Accrued liabilities | 5,010,000 | 3,269,000 | 1,741,000 | 53.26 |
| Income taxes payable | 229,000 | 150,000 | 79,000 | 52.6 |
| Total current liabilities | 7,866,000 | 6040,000 | 1,826,000 | 30.23 |
| Corporate bond payables | 3,461,000 | 3,459,000 | 2,000 | 0.06 |
| Total long-term debt | 3,470,000 | 3,474,000 | (4,000) | (0.12) |
| Less: current maturities | 6,000 | 6,000 | 0 | 0 |
| Long-term debt | 3,464,000 | 3,468,000 | (4,000) | (0.12) |
| Deferred income taxes & other liabilities | 3,347,000 | 3,216,000 | 131,000 | 4.07 |
| Class B common stock | 3,000 | 3,000 | 0 | 0 |
| Retained earnings | 1,643,000 | 3,517,000 | (1,874,000) | (53.9) |
| Total shareholders' equity | 9,040,000 | 9,812,000 | (772,000) | (7.87) |
| Total of liabilities & shareholders' equity | 23,717,000 | 22,536,000 | 1,181,000 | 5.24 |
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
16th edition
1118742974, 978-1118743201, 1118743202, 978-1118742976
