Refer to the financial information of Nike, Inc. from its annual report of 2017, in Attachment I and answer questions A and B using the same. QUESTION A (10 Marks) [CLO 2] (A-1) Perform a horizontal analysis of some major items of the income statement and the Balance Sheet and state your comments and interpretations on the same. (A-2) Calculate the following ratios for the last two years and compare and comment on the same: a. any two profitability ratios b. any two activity ratios c. any one debt ratio ATTACHMENT NIKE, Inc. Consolidated Statements of Income In mions except per sharo data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total seling and administrative expense Interest expense (income), net Other incomel expense.net Income before income taxes Income tax expense NET INCOME Year Ended May 31 2017 2016 34 350 32 3765 10. 17 405 15.312 14.971 3,341 3.278 7222 7.191 10.563 10 LEO 2016 30.601 15534 14067 3213 6.619 9892 (195) 4.886 646 4240 S 4,623 863 3.750 $ Consolidated Balance Sheets Inc. Cons. 3,80 S 2311 2019 3.241 ASSETS Current acts Cash and equivalents Short-term investments Accounts receivable.net Inventories Prepaid parses and other currentes Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwil Dolored income s and other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Cumarbos Current portion of long-term debt 27 5045 1150 16.051 3.90 280 15025 131 2787 222595 22 21.370 325 2.048 2011 2,191 3.037 3.471 1.907 5,358 1.999 1,770 Notos payable Accounts payable Accrued abilities Income tax payable Total current labties Long-term debt Deferred income taxes and other abilities Commitments and contingencies Redeemable preferred stock Shareholders' equity Common stock at stated value Class A convertible - 329 and 353 shares outstanding Class B - 1,314 and 1.329 shares outstanding Capital in eccess of stated value Accumulated other comprehensive foss) income Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8.638 213 3.979 12.407 23,259 $ 7.786 318 4.151 12.258 21 378 Page 4 of 4