Financial Statement Analysis

Question 2

Suppose the comparative balance sheets of Nike, Inc. are presented here.

Question 2
Suppose the comparative balance sheets of Nike, Inc. are presented here.
Nike, Inc.
Comparative Balance Sheets
May 31
($ in millions)
2020
2019
Assets
Current assets
Property, plant, and equipment (net)
$ 9,102
1,890
1,653
$12,645
$ 8,200
1,800
1,900
$11,900
Other assets
Total assets
Liabilities and Stockholders’ Equity
Current liabilities
Long-term liabilities
Stockholders’ equity
Total liabilities and stockholders’ equity
$ 3,564
1,164
7,917
$12,645
$ 3,600
1,200
7,100
$11,900
(a)
(a)
Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease as well.) (Enter amounts in millions.
Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round
percentages to 1 decimal place, e.g. 12.3%.)
NIKE, INC.
Condensed Balance Sheet
($ in millions)
Increase
(Decrease)
Percentage
Change from 2019
2020
2019
Assets
Current assets
$9,102
$8,200
%
Property, plant & equipment (net)
1,890
1,800
%
Other assets
1,653
1,900
%
Total Assets
$12,645
$11,900
%
Liabilities and Stockholders’ Equity
Current liabilities
$3,564
$3,600
%
Long-term liabilities
1,164
1,200
%
Stockholders’ equity
7,917
7,100
%
Total liabilities and Stockholders’ Equity
$12,645
$11,900
%
(b)
Prepare a vertical analysis of the balance sheet data for Nike for 2020. (Round percentages to 1 decimal place, e.g. 12.3%.)
NIKE, INC.
Condensed Balance Sheet
$ (in millions)
Percent
Assets
Current assets
$9,102
%
Property, plant, and equipment (net)
1,890
%
Other assets
1,653
%
Total Assets
$12,645
%
Liabilities and Stockholders’ Equity
Current liabilities
$3,564
%
Long-term liabilities
1,164
%
Stockholders’ equity
7,917
%
Total liabilities and Stockholders’ Equity
$12,645
%