Question

The financial statements for Nike, Inc., are presented in Appendix B at the end of the text. The following additional information (in thousands) is available:
Accounts receivable at May 31, 2008..... $ 2,884
Inventories at May 31, 2008 ........ 2,357
Total assets at May 31, 2008......... 13,249
Stockholders’ equity at May 31, 2008 ..... 8,693

Instructions
1. Determine the following measures for the fiscal years ended May 31, 2011 (fiscal 2010), and May 31, 2010 (fiscal 2009), rounding to one decimal place.
a. Working capital
b. Current ratio
c. Quick ratio
d. Accounts receivable turnover
e. Number of days’ sales in receivables
f. Inventory turnover
g. Number of days’ sales in inventory
h. Ratio of liabilities to stockholders’ equity
i. Ratio of net sales to assets
j. Rate earned on total assets, assuming interest expense is $4 million for the year ending
May 31, 2011, and $6 million for the year ending May 31, 2010
k. Rate earned on common stockholders’ equity
l. Price-earnings ratio, assuming that the market price was $75.70 per share on May 31,
2011, and $73.50 per share on May 31, 2010
m. Percentage relationship of net income to net sales
2. What conclusions can be drawn from these analyses?



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  • CreatedFebruary 28, 2014
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