1. The financial statements for Nike, Inc., are presented in Appendix D . Use the following additional information (in thousands):

   Accounts receivable at May 31, 2014: $3,117 Inventories at May 31, 2014: 3,947 Total assets at May 31, 2014: 18,594 Stockholders equity at May 31, 2014: 12,000

   1. Determine the following measures for the fiscal years ended May 31, 2016, and May 31, 2015. Do not round interim calculations. Round the working capital amount in part (a) to the nearest dollar. Round all other final answers to one decimal place. When required, use the rounded final answers in subsequent computations.

   		May 31, 2016			May 31, 2015
   a.	The excess of the current assets of a business over its current liabilities.Working capital (in millions)	$		$
   b.	A financial ratio that is computed by dividing current assets by current liabilities.Current ratio
   c.	A financial ratio that measures the ability to pay current liabilities with quick assets (cash, temporary investments, accounts receivable), computed as quick assets divided by current liabilities.Quick ratio
   d.	The relationship between sales and accounts receivable, computed by dividing the sales by the average net accounts receivable; measures how frequently during the year the accounts receivable are being converted to cash.Accounts receivable turnover
   e.	The relationship between sales and accounts receivable, computed by dividing the average accounts receivable by the average daily sales.Number of days' sales in receivables		days		days
   f.	The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.Inventory turnover
   g.	The relationship between the volume of sales and inventory, computed by dividing average inventory by the average daily cost of goods sold.Number of days' sales in inventory		days		days
   h.	A comprehensive leverage ratio that measures the relationship of the claims of creditors to stockholders' equity, calculated as total liabilities divided by total stockholders' equity.Ratio of liabilities to stockholders' equity
   i.	Ratio that measures how effectively a business uses its assets to generate revenues, computed as sales divided by average total assets.Asset turnover
   j.	A measure of the profitability of assets, without regard to the equity of creditors and stockholders in the assets.Return on total assets		%		%
   k.	A measure of profitability computed by dividing net income, reduced by preferred dividend requirements, by common stockholders equity.Return on common stockholders' equity		%		%
   l.	The ratio of the market price per share of common stock, at a specific date, to the annual earnings per share.Price-earnings ratio, assuming that the market price was $54.90 per share on May 29, 2016, and $52.81 per share on May 30, 2015.
   m.	Percentage relationship of net income to sales		%		%

   2. The working capital

   • decreased
   • increased
   • remained constant
   between 2015 and 2016. The current and quick ratios both
   • decreased
   • increased
   • remained constant
   during 2016. The accounts receivable turnover
   • decreased
   • increased
   • remained constant
   and number of days sales in receivables
   • decreased
   • increased
   • remained constant
   slightly. The margin of protection to creditors
   • decreased
   • increased
   • remained constant
   . The return on total assets
   • decreased
   • increased
   • remained constant
   during 2016. The return on common stockholders equity
   • decreased
   • increased
   • remained constant
   .The percent of net income to sales
   • decreased
   • increased
   • remained constant
   during 2016