Question: Examine Nike s Form 10 K report in Appendix C focusing on

Examine Nike’s Form 10-K report in Appendix C, focusing on the income statement and balance sheet. Answer the following questions:
1. Nike used the term consolidated to describe its financial statements. What does this mean?
Does Nike have any consolidated subsidiaries in which it has less than 100% ownership? How do you know?
2. Suppose Nike’s retail stores buy shoes from Converse , a wholly owned subsidiary of Nike, to resell in its stores. Suppose that at the end of fiscal 2012, Converse had recorded $10 million of such sales and all the shoes were still in Nike stores’ inventories. Converse’s inventory value for the shoes was $6 million. How do such sales of Converse affect the consolidated income statement and balance sheet of Nike? Ignore tax effects.
3. In Exhibit 17-8 on p. 732 you will find 10 ratios for Nike for fiscal 2010 and 2011. For each ratio, explain whether the 2011 ratio is an improvement over the 2010 value.




Sale on SolutionInn
Sales1
Views154
Comments
  • CreatedNovember 19, 2014
  • Files Included
Post your question
5000