PLEASE HELP ME ANSWER ALL PARTS WITH CHARTS

FSA $5$: Ratio of liabilities to stockholder$$s equity and quick ratio

Ratio of liabilities to stockholder$$s equity

You will use the NIKE financial statement located in appendix C$.$ The information

required for this ratio analysis is all found on the consolidated balance sheets. You will

use the information from the most current year $5/31/21$ and $5/31/20$

The formula is total liabilities $/$ total stockholder$$s equity

Total liabilities are equal to the the sum of current liabilities, long term debt, operating

lease facilities and deferred income taxes and other liabilities. You can also subtract

owners$$ equity from total liabilities and equity to get the total liabilities.

All of the business$$ assets are financed either by debt$($liabilities$)$ or owner investment

and accumulated earnings.

Calculate the ratio for NIKE and comment about your findings. Round the ratio to the

nearest hundredth. In the comment, address whether the ratio or increasing or

decreasing.

$5/31/21$ ratio:

$5/31/20$ ratio

Comment:

You will use the NIKE financial statement located in appendix C$.$ The information

required for this ratio analysis is all found on the consolidated balance sheets. You

will use the information from both years $5/31/21$ and $5/31/20.$ Round the ratios to the

nearest tenth

Quick Ratio $=$ Quick assets $/$ current liabilities

Note: the quick assets only include those current assets easily converted to cash, so

inventories and prepaid expenses will not be included. Ideally, the quick ratio should

be greater than one.

$5/31/21$ ratio:

$5/31/20$ ratio:

Ideally the quick ratio should be $1$ or above. Calculate the ratio and comment on

Nikes ability to pay its current liabilities. We have served as the Company's auditor since $1974.$

NIKE, Inc. Consolidated Statements of Income

YEAR ENDED MAY $31,$

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement

NIKE, Inc. Consolidated Statements of Comprehensive Income

The accompanying Notes to the Consoldated Financial Statements are an integral pert of this statement.

NIKE, Inc. Consolidated Balance Sheets