Revenues $$40,517$ $$37,797$

Cost of sales $21,64320,441$

Gross profit $18,87417,356$

Demand creation expense $5,1534,977$

Operating overhead expense $10,3499,334$

Total selling and administrative expense $15,50214,311$

Interest expense $($income$),$ net $4954$

Other $($income$)$ expense, net $(78)66$

Income before income taxes $3,4012,925$

Income tax expense $7722,392$

Net income $($loss$)$ $$2,629$ $$533$

NIKE INC.

Consolidated Balance Sheets

May $31,$ May $31,$

$ millions $($except share price$)20192018$

Current assets

Cash and equivalents $$4,466$ $$4,249$

Short$-$term investments $197996$

Accounts receivable, net $4,2723,498$

Inventories $7,0226,661$

Prepaid expenses and other current assets $1,9681,130$

Total current assets $17,92516,534$

Property, plant and equipment, net $4,7444,454$

Identifiable intangible assets, net $283285$

Goodwill $154154$

Deferred income taxes and other assets $2,0112,509$

Total assets $$25,117$ $$23,936$

Current liabilities

Current portion of long$-$term debt $$6$ $$6$

Notes payable $9336$

Accounts payable $2,6122,279$

Accrued liabilities $5,0103,269$

Income taxes payable $229150$

Total current liabilities $7,8666,040$

Long$-$term debt $3,4643,468$

Deferred income taxes and other liabilities $3,3473,216$

Shareholders$$ equity

Common stock at stated value:

Class A convertible$315$ and $329$ shares outstanding $00$

Class B$1,253$ and $1,272$ shares outstanding $33$

Capital in excess of stated value $8,5637,784$

Accumulated other comprehensive income $($loss$)231(92)$

Retained earnings $1,6433,517$

Total shareholders$$ equity $10,44011,212$

Total liabilities and shareholders$$ equity $$25,117$ $$23,936$

Shares outstanding $1,2531,272$

Company's closing stock price per share $$77\mathrm{.}14$ $$71\mathrm{.}80$

$($a$)$ Compute and compare the Altman Z$-$scores for both years