Operating Section of Statement of Cash Flows (Indirect Method) Following are the income statement and balance sheet for Nike Inc. for the year ended May 31, 2019, and a forecasted income statement and balance sheet for 2020. Nike Inc. Income Statement For Year Ended May 31 $ millions 2019 actual 2020 Est. Revenues Cost of sales $39,117 $42,246 21,643 23,362 Gross profit 17,474 18,884 Demand creation expense 3,753 4,056 Operating overhead expense 8,949 9,674 Total selling and administrative expense 12,702 13,730 Interest expense (income), net 49 49 Other (income) expense, net (78) (78) Income before income taxes 4,801 5,183 Income tax expense 772 1,037 $4,029 $4,146 Net income a 13