Use Nike, Inc.s balance sheet and other information provided below to answer the following questions. a. Compute
Question:
Use Nike, Inc.’s balance sheet and other information provided below to answer the following questions.
a. Compute Nike’s working capital in 2019 and 2018.
b. Compute Nike’s current ratio in 2019 and 2018.
c. Comment on what the working capital and current ratio indicate about Nike in 2019 and 2018.
d. Compute Nike’s debt-to-equity ratio for 2019 and 2018. Comment on what the debt-to-equity ratio indicates about Nike in 2019 and 2018.
e. Use DuPont Analysis to decompose Nike’s return on equity into return on assets and financial leverage. Nike’s net income in 2019 was $4,029 million. Comment on the effect of financial leverage on return on equity.
Step by Step Answer:
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella