Financial Statement Analysis

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Financial Statement Analysis The financial statements for Nike, Inc., are available in Appendix E. The following additional information is available (in thousands) Accounts receivable at May 31, 2013: $3,117 Inventories at May 31, 2013: 3,484 Total assets at May 31, 2013: 17,545 Stockholders' equity at May 31, 2013: 11,081 1. Determine the following measures for the fiscal years ended May 31, 2015, and May 31, 2014. Do not round interim calculations. Round the working capital amount in part (a) to the nearest dollar. Round all other final answers to one decimal place. When required, use the rounded final answers in subsequent computations Fiscal Year Fiscal Year 2015 2014 $9,642 $ 8,669 a. Working capital (in millions) 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. Asset turnover j. Return on total assets, assuming interest expense is $28 million for the 2.5 1.5 9.0 2.7 1.7 8.5 43 days 4.1 40.5 days 4 91.4 days 88.3V days 0.7 1.5 1.5 year ending May 31, 2015, and $24 million for the year ending May 31, 2014 24.6 V % 27.8 % 26.8 10.71 % k. Return on common stockholders' equity I. Price-earnings ratio, assuming that the market price was $101.67 per 25.2 share on May 29, 2015, and $76.91 per share on May 30, 2014 m. Percentage relationship of net income to sales NIKE, Inc. Consolidated Statements of Income Year Ended May 31, 2014 2015 2013 In millions, except per share data) Income from continuing operations: 30,601$ 27,799 $ 16,534 14,067 3,213 6,679 9,892 28 25,313 4,279 11,034 2,745 5,051 7,796 Cost of sales Gross profit Demand creation expense 15,353 12,446 3,031 5,735 8,766 ating overhead Total selling and administrative expense Interest expense (income), net (Notes 6, 7 and 8 103 3,544 851 2,693 net (Note 1 Income before income taxes Income tax 4,205 932 3,273 3,256 805 2,451 21 2,472 NET INCOME FROM CONTINUING OPERATIONS NET INCOME FROM DISCONTINUED OPERATIONS NET INCOME 3,273 S 2,693 $ Eamings per common share from continuing operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) 3.80 $ 3.70 $ 3.05 $ 2.97 $ 2.74 2.68 Eamings per common share from discontinued operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) 0.02 0.02 0.81 1.08 $ 0.93 $ The accompanying Notes to the Coneoidated Financial Statements are an integral part of thie statement NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31 2015 2014 2013 In millions) Net income Other comprehensive income (oss), net of tax 3,273 $ 2,693 $ 2,472 Change in net foreign currency translation adjustment) (20) 1,188 (32) (161) 38 12 Change in net gains (osses) on cash flow hedges? Change in net gains (losses) on other Total other TOTAL COMPREHENSIVE INCOME n release of cumulative translation loss related to Umbro4) income (loss), net of tax 1.161 4,434 S 18 2,504 S 83 125 2,597 1) Net oftaxbeneft(expense) of $0 milion, $0 milion and $(13) miltion, respectively. 2) Net of tax beneft (expense) of $(31) milion, $18 milion and $(22) milion, respectively )Net of tax beneft (expense) of $0milion, $0 milion and $1 milion, respectively. 4) Net of tax benet(expense) of $0milion, $0 milion and $47milion, reepectively. The accompanying Notes to the Consolidated Financial Statemente are an integral part of this statement NIKE, Inc. Consolidated Balance Sheets May 31, 2015 2014 In millions) ASSETS Current assets: 3,852 $ Cash and equivalents (Note 6) Short-term investments (Note 6) Accounts receivable, net (Note 1) Inventories (Notes 1 and 2) Deferred income taxes (Note 9) Prepaid expenses and other current assets (Notes 6 and 1 2,220 2,922 3,434 3,947 2,072 4,337 1,968 15,976 3,011 281 131 2.201 818 13,696 2834 Total current assets Property, plant and equipment, net (Note 3) dentifiable intangible assets, net (Note 4) Goodwill (Note 4) Deferred income taxes and other assets (Notes 6, 9 and 1 131 1,651 18,594 TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: 21,600$ 107 $ Current portion of long-tem debt (Note 8) Notes payable (Note 7) Accounts payable (Note 7) Accrued liabilities (Notes 5,6 and 17) Income taxes 74 2,131 3,951 71 167 1,930 2,491 5,027 1,199 1,544 Total current liabilities 1,079 1,480 Long-term debt (Note 8) Deferred income taxes and other liabilities (Notes 6,9, 13 and 17) Commitments and contingencies (Note 16) Redeemable preferred stock (Note 10) Shareholders' equity: Common stock at stated value (Note 11): Class A convertible 178 and 178 shares outstanding Class B- 679 and 692 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (Note 14) 6,773 1,246 4,685 12,707 5865 4871 10824 18,594 Total shareholders' equity TOTAL LIABILUTIES AND SHAREHOLDERS' EQUITY 21,600 $