Print Item

Question Content Area

Financial Statement Analysis

The financial statements for Nike, Inc., are presented in Appendix C. Use the following additional information (in millions):

Accounts receivable at May 31, 2016	$3,241
Inventories at May 31, 2016	4,838
Total assets at May 31, 2016	21,379
Stockholders' equity at May 31, 2016	12,258

1. Determine the following measures for the fiscal years ended May 31, 2018, and May 31, 2017. Assume 365 days a year. 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.

		May 31, 2018			May 31, 2017
a.	Working capital (in millions)	$	fill in the blank 1	$	fill in the blank 2
b.	Current ratio		fill in the blank 3		fill in the blank 4
c.	Quick ratio		fill in the blank 5		fill in the blank 6
d.	Accounts receivable turnover		fill in the blank 7		fill in the blank 8
e.	Number of days' sales in receivables		fill in the blank 9 days		fill in the blank 10 days
f.	Inventory turnover		fill in the blank 11		fill in the blank 12
g.	Number of days' sales in inventory		fill in the blank 13 days		fill in the blank 14 days
h.	Ratio of liabilities to stockholders' equity		fill in the blank 15		fill in the blank 16
i.	Asset turnover		fill in the blank 17		fill in the blank 18
j.	Return on total assets		fill in the blank 19%		fill in the blank 20%
k.	Return on stockholders' equity		fill in the blank 21%		fill in the blank 22%
l.	Price-earnings ratio, assuming that the market price was $72.12 per share on May 29, 2018, and $53.06 per share on May 30, 2017.		fill in the blank 23		fill in the blank 24

2. The working capital

decreasedincreasedremained constantdecreased

between 2017 and 2018. The current and quick ratios both

decreasedincreasedremained constantdecreased

during 2018. The accounts receivable turnover

decreasedincreasedremained constantincreased

and number of days sales in receivables

decreasedincreasedremained constantdecreased

slightly. The margin of protection to creditors

decreasedincreasedremained constantincreased

. The return on total assets

decreasedincreasedremained constantdecreased

during 2018. The return on stockholders equity

decreasedincreasedremained constantdecreased

.