The NIKE 10-K Form is reproduced in Appendix C. Required: a. Review the NIKE SEC Form 10-K

Question:

The NIKE 10-K Form is reproduced in Appendix C.

Required:

a. Review the NIKE SEC Form 10-K and analyze the financial statements by assessing NIKE’s earning power and solvency, and provide support for your assessments. Start by using the ratio framework illustrated in Figure.

b. Fine the operating segment information disclosed by NIKE. Which of NIKE’s segments generates the most revenues, and what percent is it of the total? Which of the segments has the highest profit margin, and which segment has the fastest long-lived asset turnover?

c. (Appendix 5A) Use the ROE model to analyze the financial statements. Comment on whether NIKE created shareholder value and identify the primary value drivers.

d. (Appendix 5A) Based on the financial statements, make reasonable assumptions about NIKE’s sales growth, expense/sales ratio, sales/total assets ratio, and liabilities to total asset ratio for 2010, and prepare a simplified income statement and balance sheet for NIKE for 2010.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...