Balance Sheet Nike's principal business activity involves the

Nike’s principal business activity involves the design, development, and worldwide marketing of high-quality footwear, apparel, equipment, and accessory products for serious and recreational athletes. Almost 25,000 employees work for the firm. Nike boasts the largest worldwide market share in the athletic-footwear industry and a leading market share in sports and athletic apparel.
This case uses Nike’s financial statements and excerpts from its notes to review important concepts underlying the three principal financial statements (balance sheet, income statement, and statement of cash flows) and relationships among them. The case also introduces tools for analyzing financial statements.
a. Why do accounts receivable appear net of allowance for doubtful accounts? Identify the events or transactions that cause the allowance account to increase or decrease.
b. Identify the depreciation method(s) that Nike uses for its buildings and equipment. Does Nike’s choice of depreciation method(s) seem appropriate?
c. Nike includes identifiable intangible assets on its balance sheet as an asset. Does this account include the value of the Nike name and Nike’s “swoosh” trademark? Explain.
d. Nike includes deferred income taxes among current assets, noncurrent assets, and noncurrent liabilities. Under what circumstances will deferred income taxes give rise to an asset? To a liability?
e. Nike reports accumulated other comprehensive income of $367.5 million at the end of 2009 and $251.4 million at the end of 2008, implying that other comprehensive income items amounted to $116.1 million during 2009. Why is this “income” reported as part of shareholders’ equity and not part of net income in the income statement?

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...
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...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...


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