Company NKE Most Recent Fiscal Year 2019 Period Y Scale to 1,000,000 Fiscal Year 2019 2018 2017 2016 2015 [Revenue] 39117 36397 34350 32376 30601 [Cost of Revenue] 21643 20441 19038 17405 16534 [Gross Profit] 17474 15956 15312 14971 14067 [Operating Expenses] 12702 11511 10563 10469 9892 [Operating Income] 4772 4445 4749 4502 4175 [Interest Income] -49 -54 -59 -19 -28 [Earnings before Taxes] 4801 4325 4886 4623 4205 [Income Taxes] 772 2392 646 863 932 [Net Income] 4029 1933 4240 3760 3273 a. Earnings before Taxes is not showing a smooth trend for the past 5 years and is the driver of Nike's low net income

 

Company COST Most Recent Fis 2019 Period Scale to 1,000,000 Fiscal Year 2019 2018 2017 2016 2015 [Revenue] 152703 141576 129025 118719 116199 [Cost of Revent 132886 123152 111882 102901 101065 [Gross Profit] 19817 18424 17143 15818 15134 [Operating Exp 15080 13944 13032 12146 11510 [Operating Inco 4737 4480 4111 3672 3624 [Interest Incom 0 0 0 0 0 [Earnings befor 4765 4442 4039 3619 3604 [Income Taxes] 1061 1263 1325 1243 1195 [Net Income] 3704 3179 2714 2376 2409 

Now change the company ticker in cell B1 to COST (Costco), your spreadsheet should automatically re-fill all numbers from Costco's income statement. Do you observe a similar trend for Costco regarding this item you identified in part a?

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Information from the balance sheet, income statement, and statement of cash flows for Nike NIKE, INC. Consolidated Statements of Income Year Ended December 31 (In millions) 2019 2018 Revenues $39,117 $36,397 Cost of sales 21,643 20,441 Gross profit 17,474 15,956 Demand creation expense 3,753 3,577 Operating overhead expense 8,949 7,934 Total selling and administrative expense 12,702 11,511 Interest expense (income), net 49 54 Other (income) expense, net (78) 66 Income before income taxes 4,801 4,325 Income tax expense 772 2,392 Net income $4,029 $1,933 Consolidated Balance Sheets May 31 (in millions) Current Assets Cash and cash equivalents Short-term investments Accounts receivable, net. Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes Total assets 2019 2018 $ 4,466 $4,249 197 996 4,272 3,498 5,622 5,261 1,968 1,130 16,525 15,134 4,744 4,454 283 285 154 154 2,011 2,509 $23,717 $22,536 18 *** Information from the balance sheet, income statement, and statement of cash flows for Nike NIKE, INC. Consolidated Statements of Income Year Ended December 31 (In millions) 2019 2018 Revenues $39,117 $36,397 Cost of sales 21,643 20,441 Gross profit 17,474 15,956 Demand creation expense 3,753 3,577 Operating overhead expense 8,949 7,934 Total selling and administrative expense 12,702 11,511 Interest expense (income), net 49 54 Other (income) expense, net (78) 66 Income before income taxes 4,801 4,325 Income tax expense 772 2,392 Net income $4,029 $1,933 Consolidated Balance Sheets May 31 (in millions) Current Assets Cash and cash equivalents Short-term investments Accounts receivable, net. Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes Total assets 2019 2018 $ 4,466 $4,249 197 996 4,272 3,498 5,622 5,261 1,968 1,130 16,525 15,134 4,744 4,454 283 285 154 154 2,011 2,509 $23,717 $22,536 18 ***

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