Turn to Nike’s income statement and balance sheet in Appendix C. Answer the following questions using the two statements:
1. Compute Nike’s percentage increase in revenues and in total assets in fiscal 2011. Which increased more?
2. Illustrate the balance sheet equation, using total assets, total liabilities, and shareholders’ equity from Nike’s May 31, 2011, balance sheet.
3. Nike’s retained earnings decreased from $6,095 million to $5,801 million during fiscal 2011.
A decrease of $1,858 was due to transactions not discussed in this chapter. Explain the remainder of the change in retained earnings.
4. Did Nike’s net income grow by a larger percentage in fiscal 2011 or fiscal 2010?