NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME YEAR ENDED MAY 31, (in millions, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest expense (income), net Other (income) expense, net Income before income taxes Income tax expense NET INCOME NIKE, INC. 2022 2021 2020 $ 46,710 S 44.538 S 37,403 25.231 24,576 21.162 21,470 19.962 16.241 3,850 3.114 3.592 10.954 9,911 9,534 14,804 13.025 13,126 205 262 89 (181) 14 139 8,051 6.661 2.887 605 $ 6,046 $ 934 5,727 $ 348 2,539 CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in millions) Cash provided (used) by operations: Net income Adjustments to reconcile net income to net cash provided (used) by operations: Depreciation Deferred income taxes Stock-based compensation Amortization, Impairment and other Net foreign currency adjustments Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventories (Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non- current liabilities Cash provided (used) by operations $ 2022 YEAR ENDED MAY 31, 2021 2020 6,046 $ 5,727 $ 2,539 717 744 721 (650) (385) (380) 638 611 429 123 53 398 (26) (138) 23 (504) (1,606) 1,239 (1.676) 507 (1.854) (845) (182) (654) 1,365 1,326 24 5,188 6,657 2,485 NIKE, INC. CONSOLIDATED BALANCE SHEETS (in millions) ASSETS Current assets Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets MAY 31, 2022 2021 $ 8,574 $ 9.889 4,423 3,587 4,667 4,463 8.420 6.854 2,129 1.498 28.213 26.291 Instructions: Use Nike's financial statements above to answer the following questions. 1. How much was Nike's accrual-based net income for the most recent reporting period (in millions)? $ 2. How much was Nike's cash-based net income for the most recent reporting period (in millions)? $ 3. Why is there a difference between Nike's accrual-based net income and cash-based net income? 4. Assume that the Revenues amount reported on Nike's income statement is all from credit sales. Calculate how much cash Nike collected from customers during the most recent reporting period