Question

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		$ 9,840		$ 8,200
Property, plant, and equipment (net)		1,802		1,700
Other assets		1,615		1,700
Total assets		$13,257		$11,600
Liabilities and Stockholders’ Equity
Current liabilities		$ 3,366		$ 3,400
Long-term liabilities		1,344		1,400
Stockholders’ equity		8,547		6,800
Total liabilities and stockholders’ equity		$13,257		$11,600

(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 For the Year Ended May 31May 31For the Quarter Ended May 31 ($ in millions)
		2020		2019			Increase (Decrease)		Percentage Change from 2019
Assets
Current assets		$9,840		$8,200			$		%
Property, plant & equipment (net)		1,802		1,700					%
Other assets		1,615		1,700					%
Total Assets		$13,257		$11,600			$		%
Liabilities and Stockholders' Equity
Current liabilities		$3,366		$3,400			$		%
Long-term liabilities		1,344		1,400					%
Stockholders' equity		8,547		6,800					%
Total liabilities and Stockholders' Equity		$13,257		$11,600			$		%

(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 For the Quarter Ended May 31, 2020 May 31, 2020 For the Year Ended May 31, 2020
		$ (in millions)		Percent
Assets
Current assets		$9,840		%
Property, plant, and equipment (net)		1,802		%
Other assets		1,615		%
Total Assets		$13,257		%
Liabilities and Stockholders' Equity
Current liabilities		$3,366		%
Long-term liabilities		1,344		%
Stockholders' equity		8,547		%
Total liabilities and Stockholders' Equity		$13,257		%

Answer 1

(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 May 31 ($ in millions)
		2020		2019			Increase (Decrease)		Percentage Change from 2019
Assets
Current assets		$9,840		$8,200			$1640		20%
Property, plant & equipment (net)		1,802		1,700			102		6%
Other assets		1,615		1,700			-85		-5%
Total Assets		$13,257		$11,600			$1657		14.3%
Liabilities and Stockholders' Equity
Current liabilities		$3,366		$3,400			-34		-1%
Long-term liabilities		1,344		1,400			-56		-4%
Stockholders' equity		8,547		6,800			1747		25.7%
Total liabilities and Stockholders' Equity		$13,257		$11,600			$1657		14.3%

(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 May 31, 2020
		$ (in millions)		Percent
Assets
Current assets		$9,840		74.2%
Property, plant, and equipment (net)		1,802		13.6%
Other assets		1,615		12.2%
Total Assets		$13,257		100%
Liabilities and Stockholders' Equity
Current liabilities		$3,366		25.4%
Long-term liabilities		1,344		10.1%
Stockholders' equity		8,547		64.5%
Total liabilities and Stockholders' Equity		$13,257		100%