****Use Nike's May 31, 2017 10-k to answer the following questions****

***Please clearly label answers to each question by A,B & C***

1. Financial Ratio Analysis A. Using Nike's financial statements and any additional resources if necessary, determine which part of Nikes Balance Sheet and Income Statement represent OPERATING assets, OPERATING liabilities and Operating income.

B.Then calculate NOPAT (Net operating profit after tax), NOA (net operating asset), RNOA (return on net operating asset), and Gross Profit Margin for 2017, 2016, and 2015 using the definition of these ratios. Compare these numbers and ratios across the three years and indicate any trends. Please make any necessary adjustment to income statement and balance sheet numbers as you see fit, e.g.: remove non-operating assets and liabilities from both the income statement and the balance sheet. For tax, please simply use Nikes average tax rate when calculating NOPAT.

C. Show the decomposition of Nikes RNOA into NOPM (net operating profit margin) and NOAT (net operating asset turnover) using the numbers from part a. for both 2017, 2016, and 2015. What do these ratios suggest about the change of performance of Nike across the past three years?

NIKE, Inc. Consolidated Statements of Income Year Ended May 31, 2016 In millions, except per share data) 2017 2015 34,350 $ 19,038 15,312 3,341 7,222 10,563 32,376 $ 30,601 16,534 14,067 3,213 6,679 9,892 28 Cost of sales Gross profit Demand creation expense 17,405 14,971 3,278 10,469 19 Total selling and administrative expense Interest expense (income), net Other (income Income before income taxes Income tax NET INCOME 59 net 4,623 863 4,205 932 3,273 4,886 4,240 S$ 3,760 $ Earnings per common share 2.56 $ 2.51 2.21 $ 2.16 $ Basic 1.90 Diluted 1.85 0.62 $ The accompanying Notes to the Consoidated Fnancial Statements areanintegral part of this statement