Go to www.nikebiz.com and select Investors to locate Nike’s most current financial information.
1. Take a look at Nike’s Condensed Consolidated Statement of Cash Flows. Does Nike use the direct or indirect method? How can you tell?
2. Locate Management’s Discussion and Analysis. Look under the section titled Liquidity and Capital Resources. What does management have to say about cash provided by operations?
3. Which is larger—cash provided (or used) by operations or net income for the period? Why is the cash provided by operations different from the amount of net income for the year?
4. Why does Nike add depreciation to net income in the operating activities section?
5. What were the primary uses of cash by investing activities in the most recent fiscal period?
6. What were the primary providers of cash or uses of cash by financing activities in the most recent fiscal period?