Compute and Interpret Capital Structure, Coverage, and Liquidity Ratios Information from the balance sheet, income statement, and statement of cash flows for Nike follows. NIKE, INC Consolidated Statements of Income Year Ended May $31($in millions$)20192018$ Revenues $$38,335$ $$35,669$ Cost of sales $21,21020,032$ Gross profit $17,12515,637$ Demand creation expense $3,6783,505$ Operating overhead expense $8,7707,775$ Total selling and administrative expense $12,44811,280$ Interest expense $($income$),$ net $4853$ Other $($income$)$ expense, net $(76)65$ Income before income taxes $4,7054,239$ Income tax expense $7572,344$ Net income $$3,948$ $$1,895$ NIKE, INC. Consolidated Balance Sheets May $31($in millions$)20192018$ Assets Current assets Cash and equivalents $$4,377$ $$4,164$ Short$-$term investments $193976$ Accounts receivable, net $4,1873,428$ Inventories $5,5105,156$ Prepaid expenses and other current assets $1,9291,107$ Total current assets $16,19614,831$ Property, plant, and equipment, net $4,6484,366$ Identifiable intangible assets, net $277279$ Goodwill $151151$ Deferred income taxes $1,9712,459$ Total assets $$23,243$ $$22,086$ Liabilities and shareholders$$ equity Current liabilities Current portion of long$-$term debt $$6$ $$6$ Notes payable $9329$ Accounts payable $2,5602,233$ Accrued liabilities $4,9103,204$ Income taxes payable $224147$ Total current liabilities $7,7095,919$ Long$-$term debt $3,3953,399$ Deferred income taxes and other liabilities $3,2803,152$ Shareholders$$ equity Class A convertible$315$ and $329$ shares outstanding $$ Class B$1,253$ and $1,272$ shares outstanding $33$ Capital in excess of stated value $7,0206,256$ Accumulated other comprehensive income $($loss$)226(90)$ Retained earnings $1,6103,447$ Total shareholders$$ equity $8,8599,616$ Total liabilities and shareholders$$ equity $$23,243$ $$22,086$ NIKE, INC. Consolidated Statements of Cash Flows Year Ended May $31($in millions$)20192018$ Cash provided by operations: Net income $$3,948$ $$1,895$ Adjustments to reconcile net income to net cash provided by operations: Depreciation $691732$ Deferred income taxes $33634$ Stock$-$based compensation $319214$ Amortization $1526$ Net foreign currency adjustments $228(97)$ Changes in certain working capital components and other assets and liabilities: $($Increase$)$ decrease in accounts receivable $(265)183($Increase$)$ decrease in inventories $(480)(250)($Increase$)$ decrease in prepaid expenses and other current and noncurrent assets $(199)34$ Increase $($decrease$)$ in accounts payable, accrued liabilities and other current and noncurrent liabilities $1,4951,485$ Cash provided by operations $5,7854,856$ Cash provided $($used$)$ by investing activities: Purchases of short$-$term investments $(2,878)(4,687)$ Maturities of short$-$term investments $1,6813,541$ Sales of short$-$term investments $2,0312,446$ Additions to property, plant and equipment $(1,097)(1,007)$ Disposals of property, plant and equipment $53$ Other investing ac