NIKE, INC. Consolidated Statements of Income ear Ended December 31 (In millions) 2019 2018 evenues $39,117 536,397 ost of sales 21,643 20,441 ross profit 17,474 15,956 emand creation expense 3,753 3,577 perating overhead expense 8,949 7,934 otal selling and administrative expense 12,702 11,511 terest expense (income), net 49 ther (income) expense, net (78) 66 come before income taxes 4.801 4,325 ncome tax expense 772 2,392 let income $ 4,029 $1,933 54 Consolidated Balance Sheets May 31 (in millions) 2019 2018 equivalents estments vable, net. ses and other current assets ssets $4,466 $4,249 197 996 4,272 3,498 5,622 5,261 1,968 1,130 16,525 15,134 4,744 4,454 283 285 154 154 2,011 2,509 $23,717 $22,536 t and equipment, net angible assets, net me taxes stockholders' equity ties n of long-term debt $6 $6 336 ble 9 2.612 5,010 229 on liabilities sayable 150 ders' equity and stockholders' equity 9,040 9,812 $23,717 $22,536 ent of Cash Flows llions) 2019 2018 $4,029 $1,933 operations: 705 747 34 647 325 218 15 27 233 (99) ets and liabilities: (270) 187 (490) (255) d non-current assets (203) 35 d other current and non-current liabilities 1,525 1,515 5,903 4,955 (2,937) (4.783) 1,715 3,613 2,072 2.496 (1.119) (1,028) 5 3 (25) (264) 276 (6) (6) (325) 13 (27) (23) 700 (4.286) (4 (1,332) (1,2- nces (4,286) (4,254) (1,332) (1,243) (17) (55) (5,293) (4,835) (129) 45 217 441 4,249 3,808 $4,466 $4,249 As of May 31, there were the approximate shares outstanding: 2019 - 1,253 million 2018 - 1,272 million As of May 31, the company's stock closed at the following values: 2019 - $77.14 2018 - $71.80 (a) Compute and compare the Altman Z-scores for both years. (Do not round until your final answer; then round your answers to two decimal places.) 2019 Z-score = 2.98 X 2018 Z-score = 3.1 (b) Which of the following statements best describes the company's Altman Z-scores? OBoth the Altman Z-scores are above 3.00 which indicate the company has a very low probability of bankruptcy. OBoth the Altman Z-scores are below 1.80 which indicate the company has a very high probability of bankruptcy. OThe Altman Z-scores have increased from 2018 to 2019 which indicates the company's bankruptcy risk has decreased. OThe Altman Z-scores have decreased from 2018 to 2019 which indicates the company's bankruptcy risk has decreased. ==