please correct the statement of cash flows

MENS SERVEIS dlement, Baldlite sheet, and stateme Assume the following are the financial statements of Nike, Inc. Consolidated Statements of income Year ended May 31 In Millions 2011 2010 Revenues $ 21,862 $ 20,014 Cost of sales 11,354 10,214 Gross profit 10,508 9,800 Demand creation expense 3.248 2.356 Operating overhead expense 4.345 3,970 Total selling and administrative expense 7.593 6,326 Interest expense (income), net Other (income) (33) (49) Income before income taxes 2.944 3,517 Income taxes 811 610 Net income $2,133 $2.907 Balance Sheets May 31 2011 2010 In Millions Assets Cash and equivalents Short-term investments Accounts receivable, net Inventories Deferred income taxes Prepaid expenses and other current assets $1.955 2,583 3,138 2.715 312 594 $3,079 2,067 2.650 2.041 249 873 Balance Sheets May 31 2011 2010 312 in Millions Assets Cash and equivalents Short-term investments Accounts receivable, net Inventories Deferred income taxes Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets (net) Goodwill Deferred income taxes and other assets Total assets Liabilities and Shareholders' Equity Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Total liabilities Common stock at stated value $ 1,955 $3,079 2,583 2.067 3,138 2,650 2.715 2,041 249 594 873 11,297 10,959 2,115 1,932 487 467 205 894 873 $ 14,998 $ 14,419 188 $7 139 1.255 1,904 $ 200 187 1,469 1,985 117 3,958 276 921 5.155 59 3,364 446 855 4,665 921 5,155 855 4,665 Deferred income taxes and other liabilities Total liabilities Common stock at stated value Capital in excess of stated value Accumulated other comprehensive income Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 95 3,944 3,441 215 5,801 6,095 9,843 9.754 $ 14,998 $ 14,419 We forecast Nike's income statement using the following forecas Revenue growth based on growth in revenues from 2010 to 2011 996 Cost of sales/Revenues 51.99 Demand creation expense/Revenues 14.996 Operating overhead expenses/Revenues 19.996 Income taxes/income before income taxes 27.596 Instructions: Forecast Nike's fiscal year 2012 income statement Assume no change for: other income and interest expense. Round forecasts to $ millions. Do not use negative signs with your answers in the incomes Consolidated Statements of income ($ millions) 2011 2012 Revenues $21,862 $ 23,830 Cost of sales 11,354 12,368 Consolidated Statements of income ($ millions) 2011 2012 Revenues $21,862 $ 23,830 Cost of sales 11,354 12,368 Gross profit 10,508 11,462 Demand creation expense 3,551 Operating overhead expense 4,345 4,742 Interest expense, net Other income 33 Income before income taxes 2.944 3,198 Income taxes 811 879 Net Income $ 2.133 $ 2.319 33 We forecast Nike's balance sheet using the following forecast assu Accounts receivable/Revenues 14.496 Inventories/Revenues 12.496 Deferred income taxes/Revenues 1.496 Prepaid expenses and other current assets/Revenues 2.796 L-T deferred income taxes and other assets/Revenues 4.196 Depreciation expense/Prior-year PPE, net (incl. in overhead) 17.39 Amortization expense $24 Accounts payable/Revenues 6.796 Accrued liabilities/Revenues 9.196 Income taxes payable/Revenues 0.596 Deferred income taxes and other liabilities/Revenues 4.296 Capital expenditures/Revenues 2.096 Income taxes payable/Revenues Deferred income taxes and other liabilities/Revenues Capital expenditures/Revenues Dividends/Net income Current portion of LT debt due in 2013 0.596 4.296 2.096 23.496 $50 Instructions: Forecast Nike's fiscal year 2012 balance sheet. Assume no change for: short-term investments, goodwill, notes Round forecasts to $ millions. 2011 2012 5 $1,955 2,583 3.138 2,715 312 3,150 2.583 v 3,432 2.955 334 594 643 Balance Sheet ($ millions) Assets Cash and equivalents Short-term investments Accounts receivable, net Inventories Deferred income taxes Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets Total assets Liabilities and Shareholders' Equity Current portion of long-term debt Notes pavable 11.297 2,115 487 205 894 $14.998 $ 13,097 1.749 x 463 205 977 16,968 v $200 $ 50 187187 Current portion of long-term debt $200 $ Notes payable 187 Accounts payable 1,469 Accrued liabilities 1.985 Income taxes payable 117 Total current liabilities 3,958 Long-term debt 276 Deferred income taxes and other liabilities 921 Total liabilities 5,155 Common stock at stated value Capital in excess of stated value 3.944 Accumulated other comprehensive income Retained earnings 5,801 Total shareholders' equity 9,843 Total liabilities and shareholders' equity $14,998 $ 187 1,597 2.169 119 4,122 226 1,001 5,349 v 3,944 95 7,577 11.619 16,968 Instructions: Forecast Nike's fiscal year 2012 statement of cash flow Use negative signs with your answers below, when appropriate. Nike's Forecasted Statement of Cash Flows (5 millions) 2012 Est. Net income 2.319 Add: depreciation 366 Add: amortization 24 Change in Accounts receivable 294 Change in Inventories 240 Change in Deferred income taxes 22x LUPPUUPI 24 > * * 22 * * * * Nike's Forecasted Statement of Cash Flows ($ millions) 2012 Est. Net income 2.319 Add: depreciation 366 Add: amortization Change in Accounts receivable 294 Change in Inventories 240 > Change in Deferred income taxes Change in Prepaid expenses & other current assets 49 X Change in LT Deferred income taxes & other assets 83 x Change in Accounts payable 128 Change in Accrued liabilities 184 Change in Income taxes payable Change in LT Deferred income taxes and other liabilities Net cash from operating activities 2.415 Capital expenditures 477 Net cash from investing activities (477) Dividends 543 Payments of LT debt 200 Net cash from financing activities (743) Net change in cash 1,195 Beginning cash 1,955 Ending cash 3,150