NIKE INC. Consolidated Income Statements For Year Ended (31; millions) Revenues - $39,117 A Cost of sales I: 21,643 \" Gross profit I 17,474 -- Demand creation expense : 3,753 \"Operating overhead expense 8,949 h A Total selling and administrative expense 12,702 \" Interest expense (income), net - 49 h -- Other (income) expense, net (78) i I. Income before income taxes I 4,801 Income tax expense I: 772": Net income $4,029 ' $36,397 20,441 15,956 3,577 7,934\" 1 1,51 1 54., 66 4,325 2,392 $1,933 NIKE INC. Consolidated Balance Sheets $ millions Current assets H Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets ' Total current assets 7 Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets -Total assets Current liabilities H Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable ' Total current liabilities - Long-term debt Deferred income taxes and other liabilities Commitments and contingencies (Note 18) Shareholders' equity Common stock at stated value: $4,466 'I 97 4,272 5,622 1,968 16,525 4,744 283 1 54 2,011 $23,717 $6 2,61 2 5,01 0 229 7,866 3,464 3,347 7 Class A convertible31 5 and 329 shares outstanding _ - Class B1,253 and 1,272 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings :Total shareholders' equity Total liabilities and shareholders' equity 3 7,163 _ 231 1,643 9,040 _ $23,717 $4,249 ' 996 3,498 ' 5,261 x 1,130 ' 15,134 4,454 l 285 l 154 l _ 2,509 $22,536 I $6 ' 336 2,279 ' 3,269 l 150 ' 6,040 3,468 ' 3,216 3 1 6,384 (92) ' 3,517 x 9,812 I = $22,536 c. Use the parsimonious forecast method, as shown in the Analysis Insight box on page 14-5, to forecast sales, NOPAT, and NOA for 2020 through 2023 using the following assumptions. Sales growth - 8% Net operating profit margin (NOPM) 2019 ratios rounded to three decimal places Net operating asset turnover (NOAT), year-end 2019 ratios rounded to three decimal places Forecast the terminal period value assuming a 2% terminal period growth and using the NOPM and NOAT assumptions above. Note: Round your final answers to the nearest whole dollar. Nike (NKE) Forecast Horizon Reported Terminal ($ millions) 2019 Sales $ ox$ ox$ ox'$ 0x3; ox$ 0x NOPAT 0x 0x 0". 0x 0x 0x NOA O x O x O X 0 x O X 0 K d. Estimate the value of a share of Nike's common stock using the residual operating income (ROPI) model as of May 31, 2019; assume a discount rate (WACC) of 6.8% and common shares outstanding of 1,682 million. Note: Round your final answer to two decimal places (for example, round $15555 to $15.56). Stock price per share: $ 0 X
