Operating Section of Statement of Cash Flows (Indirect Method)

Assume following are the income statement and balance sheet for Nike Inc. for the year ended May 31, 2013, and a forecasted income statement and balance sheet for 2014.

Assume following are the income statement and balance sheet for Nike Inc. for the year ended May 31, 2013, and a forecasted income statement and balance sheet for 2014. Income Statement ($ millions) 2013 actual 2014 Est. Revenues $ 25,313 $ 27,465 14,279 15,490 Gross margin 11,034 11,975 Demand creation expense 2,745 2,966 Operating overhead expense 5,035 5,466 Interest income, net (3) (3) (15) (19) 3,272 3,565 808 881 $ 2,464 $ 2,684 Cost of sales Other (income) Income before income taxes Income taxes Net income Balance Sheet ($ millions) 2013 Actual 2014 Est. Cash and equivalents $ 3,337 $ 3,625 Short-term investments 2,628 2,628 New investments -- 1,129 Balance Sheet ($ millions) 2013 Actual 2014 Est. Accounts receivable, net 3,117 3,378 Inventories 3,434 3,735 Deferred income taxes 308 330 802 879 Total current assets 13,626 15,704 Property, plant and equipment, net 2,452 2,654 Identifiable intangible assets, net 382 304 Goodwill 131 131 993 1,071 $ 17,584 $ 19,864 Current portion of long-term debt $ 57 $ 46 Notes payable 121 121 Accounts payable 1,646 1,785 Accrued liabilities 1,986 2,142 Income taxes payable 98 107 18 18 Prepaid expenses and other current assets Deferred income taxes and other assets Total Assets Liabilities of discontinued operations Balance Sheet ($ millions) 2013 Actual 2014 Est. Total current liabilities 3,926 4,219 Long-term debt 1,210 1,164 Deferred income taxes and other liabilities 1,292 1,401 Common stock at stated value 3 3 Capital in excess of stated value 5,184 5,184 274 274 5,695 7,619 11,156 13,080 $ 17,584 $ 19,864 Shareholders' equity: Accumulated other comprehensive income Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Prepare the net cash flows from operating activities section of a forecasted statement of cash flows for 2014 using the indirect method. Treat current and noncurrent deferred tax assets and liabilities as operating. Operating expenses (Cost of sales) for 2014 include estimated depreciation expense of $485 million and amortization expense of $78 million. Use negative signs with answers to show a decrease in cash. Nike, Inc. STATEMENT OF CASH FLOWS ($ MILLIONS) Forecasted FOR YEAR ENDED May 31, 2014 Net income $Answer 0 Nike, Inc. STATEMENT OF CASH FLOWS ($ MILLIONS) Forecasted FOR YEAR ENDED May 31, 2014 Depreciation Amortization Accounts receivable Inventories Deferred Income taxes Prepaid expenses and other current Deferred income taxes and other assets Accounts payable Accrued liabilities Income taxes payable Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Answer 0 Deferred income taxes and other liabilities Nike, Inc. STATEMENT OF CASH FLOWS ($ MILLIONS) Forecasted FOR YEAR ENDED May 31, 2014 Net cash from operating activities $Answer 0