1. Use Nikes Selected Financial Data on in Appendix B to identify the gross margin percent for 20162012. Round gross margin percents to one decimal place.
2. Management has implemented strategies to generate more income from each item sold. Is the trend in the gross margin percent favorable or unfavorable?
3. Show how amounts on Nikes Consolidated Statements of Income, on , were used to calculate the margin percent for 2016

11 Financial History (In millions, except per share data and financial ratios) 2016 2015 2014 2013 2012 Year Ended May 31, Revenues $ 32,376 $ 30,601 $ 27,799 $ 25,313 $ 23,331 Gross profit 14.971 14,067 12,446 11,034 10,148 Gross margin % 46.2% 46.0% 44.8% 43.6% 43.5% Net income from continuing operations 3,760 3,273 2,693 2,451 2,257 Net income (loss) from discontinued operations 21 (46) Net income 3,760 3,273 2,693 2,472 2,211 Earnings per common share from continuing operations: Basic 2.21 1.90 1.52 1.37 1.23 Diluted 2.16 1.85 1.49 1.34 1.20 Earnings per common share from discontinued operations: Basic 0.01 (0.03) Diluted 0.01 (0.02) Weighted average common shares outstanding 1,697.9 1,723.5 1,766.7 1,794.6 1,839.9 Diluted weighted average common shares outstanding 1,742.5 1,768,8 1,811.6 1,832.9 1,879.2 Cash dividends declared per common share 0.62 0.54 0.47 0.41 0.35 Cash flow from operations, inclusive of discontinued operations 3,096 4,680 3,013 3,032 1,932 Price range of common stock: High 68.19 52.75 40.13 32.96 28.60 Low 47.25 36.57 29.56 21.95 19.65 At May 31, Cash and equivalents $ 3,138 $ 3,852 $ 2,220 $ 3,337 $ 2,254 Short-term investments 2,319 2,072 2,922 2,628 1,503 Inventories 4,838 4,337 3,947 3,484 3,251 Working capital, excluding assets and liabilities of discontinued operations 2033 9,667 9,255 8,319 9,391 7,271 Total assets, excluding assets of discontinued operations 21,396 21,597 18,587 17,540 14,800 Long-term debt 2,010 1,079 1,199 1,210 228 Capital lease obligations 15 5 74 81 Redeemable preferred stock 0.3 0.3 0.3 0.3 0.3 Shareholders' equity 12,258 10,824 11,081 10,319 Year-end stock price 50.84 38.46 30.83 27.05 Market capitalization 92,867 87,044 66,921 55,124 49,546 Financial Ratios: Return on equity 30.1% 27.8% 24.6% 23.1% 22.0% Return on assets 17.5% 16.3% 14.9% 15.3% 15.1% Inventory turns 3.8 4.0 4.1 4.2 4.5 Current ratio at May 31 2.8 2.5 2.7 3.4 3.0 Price/Earnings ratio at May 31 25.6 27.5 25.9 22.8 23.0 (1) Prior year amounts have been updated to reflect the adoption of Accounting Standards Update No. 2015-17, which requires all deferred tax assets and deferred tax liabilities to be classified as non-current. Refer to Recently Adopted Accounting Standards in Note 1 - Summary of Significant Accounting Policies in the accompanying Notes to the Consolidated Financial Statements. (2) Assets of discontinued operations were $0 million, $0 million, $0 million, $0 million and $615 million for the years ended May 31, 2016, 2015, 2014, 2013 and 2012, respectively. (3) Liabilities of discontinued operations were $0 million, $0 million, $0 million, $18 million and $170 million for the years ended May 31, 2016, 2015, 2014, 2013 and 2012, respectively, (4) During the fiscal year ended May 31, 2015, the Company restructured the terms of certain capital leases, which subsequently qualified as operating leases. 12,707 55.22