Operating Section of Statement of Cash Flows (Indirect Method) Assume following are the income statement and balance sheet for Nike for the year ended Income Statement (5 millions) 2012 actual 2013 Est. Revenues Cost of sales $18,627.0 $21,253.0 10,239.6 11,689.0 Gross margin 8,387.4 9,564.0 Selling and administrative expense 5,953.7 6,801.0 Operating profit 2,433.7 2,763.0 Interest income, net 77.1 77.1 Other (expense) income, net (7.9) (7.9) Income before income taxes 2,502.9 2,832.2 Income taxes 619.5 706.0 Net income $1,883.4 $2,126.2 Assets Balance Sheet ($ millions) 2012 actual 2013 Est. Cash and equivalents Short-term investments Accounts receivable, net Inventories Deferred income taxes Prepaid expenses and other current assets Total current assets $2,181.9 $3,285.4 642.2 642.2 2,753.3 3,188.0 2,438.4 2,810.0 227.2 259.0 596.3 680.0 8,839.3 10,864.6 4,103.0 4,613.0 Property, plant and equipment* Accumulated depreciation Property, plant and equipment, net Goodwill and other current assets Deferred income taxes and other assets Total Assets Liabilities and Equity (2,211.9) (2,556.9) 1,891.1 2,056.1 1,191.9 1,152.9 594.0 520.4 $ 12,442.7 $14,667.6 Current portion of long-term debt $6.3 $31.3 Notes payable 177.7 193.7 Accounts payable 1,287.6 1,430.0 Accrued liabilities 1,761.9 2,029.0 Income taxes payable 88.0 110.0 Total current liabilities 3,321.5 3,794.0 Long-term debt 441.1 408.8 Deferred income taxes and other liabilities 854.5 976.0 Total liabilities 4,617.1 5,178.8 Redeemable preferred stock 0.3 0.3 Common stock 2.8 2.8 Capital in excess of stated value 2,497.8 2,497.8 Accumulated other comprehensive income 251.4 251.4 5,073.3 6,736.5 Retained earnings Stockholders' equity Total liabilities and equity 7,825.6 9,488.8 $ 12,442.7 $14,667.6 *Gross property, plant and equipment and accumulated depreciation are inserted in the ba Prepare the net cash flows from operating activities section of a forecasted statement of cas retained earnings includes dividends of $467 million. Enter answers using one decimal place as shown in the above financial statements. Use negative signs with answers to show a decrease in cash. Net income Nike, Inc. STATEMENT OF CASH FLOWS ($ MILLIONS) Forecasted FOR YEAR ENDED May 31, 2013 Add (Deduct) Items to Convert Net Income to Cash Basis 0 x Depreciation 0 x Amortization 0 x Accounts receivable 0 x Inventories 0 x Deferred Income taxes 0 x Prepaid expenses and other current assets 0 x Deferred income taxes and other assets 0 x Accounts payable 0 x Accrued liabilities 0 x Income taxes payable 0 x Deferred income taxes and other liabilities 0 x Net cash flow from operating activities $ 0x