Question

Exercise 13-05 Hypothetical balance sheets of Nike, Inc. are presented here. NIKE, INC. Condensed Balance Sheet May 31 ($ in millions) 2022 2021 Assets Current Assets Property, plant, and equipment (net) Other assets $9,520 1,990 1,590 $13,100 $8,800 1,810 1,610 $12,220 Total assets Liabilities and Stockholders' Equity Current Liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $3,220 1,260 8,620 $13,100 $3,380 1,340 7,500 $12,220 (a) Prepare a horizontal analysis of the balance sheet data for Nike, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.5%.)

Answer 1

a
Condensed Balance Sheet
May 31
($ in millions)
	2022	2021	Increase (Decrease)	Percentage Change from 2021
Assets
Current Assets	9520	8800	720	8.2%
Property, plant, and equipment (net)	1990	1810	180	9.9%
Other assets	1590	1610	-20	-1.2%
Total assets	13100	12220	880	7.2%
Liabilities and Stockholders' Equity
Current Liabilities	3220	3380	-160	-4.7%
Long-term liabilities	1260	1340	-80	-6.0%
Stockholders’ equity	8620	7500	1120	14.9%
Total liabilities and stockholders' equity	13100	12220	880	7.2%
b
Condensed Balance Sheet
May 31,2022
	($ in millions)	Percent
Assets
Current Assets	9520	72.7%
Property, plant, and equipment (net)	1990	15.2%
Other assets	1590	12.1%
Total assets	13100	100.0%
Liabilities and Stockholders' Equity
Current Liabilities	3220	24.6%
Long-term liabilities	1260	9.6%
Stockholders’ equity	8620	65.8%
Total liabilities and stockholders' equity	13100	100.0%