Identify the effective income tax rate disclosed by Nike in each of its last three fiscal years
Question:
Identify the effective income tax rate disclosed by Nike in each of its last three fiscal years and compare that to the IRS corporate income tax rates for those years.
Identify at least two items that contribute to the difference between the effective income tax rate and the IRS corporate income tax rate for Nike and explain if these two items increase or decrease the effective income tax rate versus the IRS corporate income tax rate (e.g., depreciation methods, tax loss carry forward, differences in recognition of revenue or expenses, etc.).
Discuss how these two items have impacted Nike's financial statements in terms of deferred tax assets and deferred tax liabilities over the last three years.
Calculate how the difference between income taxes payable and income tax expense have impacted Nike's cash flow in each of the last three fiscal years.
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw