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Nike Inc. incurred $500 million in marketing expenses and $200 million in R&D expenses during the year. The company reported the following financial figures: Total
- Nike Inc. incurred $500 million in marketing expenses and $200 million in R&D expenses during the year. The company reported the following financial figures:
- Total Revenue: $36 billion
- Operating Income: $6 billion
- Net Income: $4 billion
- Requirements:
- Calculate Nike's operating profit margin after accounting for marketing and R&D expenses.
- Prepare a comparative income statement showing the impact of marketing and R&D expenses on net income.
- Analyze the strategic benefits of marketing and R&D investments for Nike.
- Discuss the classification of marketing and R&D expenses in Nike's financial statements.
- Evaluate the impact of these expenses on Nike's market share and competitive position.
- Total Revenue: $36 billion
- Operating Income: $6 billion
- Net Income: $4 billion
- Calculate Nike's operating profit margin after accounting for marketing and R&D expenses.
- Prepare a comparative income statement showing the impact of marketing and R&D expenses on net income.
- Analyze the strategic benefits of marketing and R&D investments for Nike.
- Discuss the classification of marketing and R&D expenses in Nike's financial statements.
- Evaluate the impact of these expenses on Nike's market share and competitive position.
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