The 10-K of NIKE is reproduced in Appendix C. Required (a) What are the major sources of

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The 10-K of NIKE is reproduced in Appendix C.

Required

(a) What are the major sources of cash for the company, and what is it doing with that cash?

(b) Were there any significant transactions in 2007, 2008 or 2009 that did not affect cash but were reported on the statement of cash flows?

(c) Why is the gain on divestitures a negative number?

(d) Discuss NIKE’s handling of its accounts receivable over the three years. How does it compare to sales growth, and what might the differences indicate?

(e) Analyze NIKE’s cash management policies across the three-year period (2007-2009).


Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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