Suppose the following items were taken from the balance sheet of Nike, Inc. $($All dollars are in

millions.$)$

Instructions

$($a$)$ Classify each of these items as an asset, liability, or stockholders' equity and determine the total

dollar amount for each classification.

$($b$)$

Determine Nike's accounting equation by calculating the value of total assets, total liabilities,

and

total stockholders'

equity.

$($c$)$ To what extent does Nike rely on debt versus equity financing?

$($d$)$ Assume that building increased to $$4,600$ and common stock increased to $$3,714\mathrm{.}3$

What impact do these changes have to the percentage of assets financed by debt

and equity?