PLEASE HELP ME ANSWER ALL PARTS WITH GIVEN TABLES:

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

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Ratio of liabilities to stockholder$$s equity

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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:

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$5/31/20$ ratio

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Comment:

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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.

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$5/31/21$ ratio:

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$5/31/20$ ratio:

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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 $31,$

$($in milions, except per share data$)202120202019$ Revenues $ $44,538$ $ $37\mathrm{.}403$ $ $39,117$ Cost of seles $24,57621,16221,643$ Gross profit $19,96216\mathrm{.}24117,474$ Demand creation expense $3,1143,5923,753$ Operating overhead expense $9,9119,5348,949$ Total selling and administrative expense $13,02513,12612,702$ Interest expense $($income$),$ net $2628949$ Other $($income$)$ expense, net $14139(78)$ Income before income taxes $6\mathrm{.}6612,8874,801$ Income tax expense $934348772$ NET INCOME $ $5,727$ $ $2,539$ $ $4,029$ Earrings per common share: Basic $ $3\mathrm{.}64$ $ $1\mathrm{.}63$ $ $2\mathrm{.}65$ Diluted $ $3\mathrm{.}56$ $ $1\mathrm{.}60$ $ $2\mathrm{.}49$ Weighted average cormmon shares cutstanding: Basio $1,573\mathrm{.}01,558\mathrm{.}81,579\mathrm{.}7$ Diluted $1,609\mathrm{.}41,591\mathrm{.}61\mathrm{.}618\mathrm{.}4$

The accompanying Notec to the Consolidated Financial Statements are an integral pert of this statement.

NIKE, Inc. Consolidated Statements of Comprehensive Income

$($Dolars in milions$)$ YEAR ENDED MAY $31,202120202019$ Not income $ $5,727$ $ $2,539$ $ $4,029$ Other comprehensive income $($loss$),$ net of tax: Change in net foreign currency translation adjustment $496(148)(173)$ Change in net gains $($losses$)$ on cash flow hedges $(825)(130)503$ Change in net gains $($losses$)$ on other $5(9)(7)$ Total other comprehensive income $($loss$),$ net of tax $(324)(287)323$ TOTAL COMPREHENSIVE INCOME $ $5\mathrm{.}403$ $ $2,252$ $ $4,352$

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

NIKE, Inc. Consolidated Balance Sheets

$($in milions$)$ MAY $31,20212020$