Exercise 13-05
Hypothetical balance sheets of Nike, Inc. are presented here.
NIKE, INC. Condensed Balance Sheet May 31 ($ in millions)
(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%)
NIKE, INC. Condensed Balance Sheet May 31 ($ in millions)
(b) Prepare a vertical analysis of the balance sheet data for Nike for 2022.
NIKE, INC. Condensed Balance Sheet
Ans. 1 | NIKE INC. | |||||
Condensed Balance Sheet | ||||||
For the Month Ended May 31, 2022 and 2021 | ||||||
2022 | 2021 | Amount change | Percentage change | |||
Assets | ||||||
Current assets | $9,600 | $8,790 | $810 | 9.2% | ||
Property, plant and equipment | $1,810 | $1,800 | $10 | 0.6% | ||
Other assets | $1,580 | $1,710 | -$130 | -7.6% | ||
Total assets | $12,990 | $12,300 | $690 | 5.6% | ||
Liabilities and Owner's Equity | ||||||
Current liabilities | $3,170 | $3,300 | -$130 | -3.9% | ||
Long term liabilities | $1,230 | $1,390 | -$160 | -11.5% | ||
Stockholder's equity | $8,590 | $7,610 | $980 | 12.9% | ||
Total Liabilities and stockholder's equity | $12,990 | $12,300 | $690 | 5.6% | ||
Change in amount = Particular amount of current year 2022 - Particular amount of previous year 2021 | ||||||
Change in percentage = Change in amount / particular amount of base (2021) or previous year * 100 | ||||||
Ans. 2 | NIKE INC. | |||||
Condensed Balance Sheet | ||||||
For the Month Ended May 31, 2022 | ||||||
in millions | Percent | |||||
Assets | ||||||
Current assets | $9,600 | 73.9% | ||||
Property, plant and equipment | $1,810 | 13.9% | ||||
Other assets | $1,580 | 12.2% | ||||
Total assets | $12,990 | 100.0% | ||||
Liabilities and Owner's Equity | ||||||
Current liabilities | $3,170 | 24.4% | ||||
Long term liabilities | $1,230 | 9.5% | ||||
Stockholder's equity | $8,590 | 66.1% | ||||
Total Liabilities and stockholder's equity | $12,990 | 100.0% | ||||
*Calculations for Common Size Balance Sheet: | ||||||
Amount is percentage from assets side (2022) = Particular amount from assets side (2022) / Total assets (2022) * 100 | ||||||
Amount is percentage from liabilities side (2022) = Particular amount from liability side (2022)/ Total liabilities and owner's equity (2022) * 100 | ||||||
a) Condensed balance sheet may 31 ($ in million ) | |||||||
2022 | 2021 | increase (decrease) | percentage change from 2016 | ||||
Assets | |||||||
current assets | 9600 | 8790 | 810 | 9.2% | |||
property plant & equipment net | 1810 | 1800 | 10 | 0.6% | |||
other assets | 1580 | 1710 | -130 | -7.6% | |||
total assets | 12990 | 12300 | 690 | 5.6% | |||
liabilities & stockholders equity | |||||||
current liabilities | 3170 | 3300 | -130 | -3.9% | |||
long term liabilities | 1230 | 1390 | -160 | -11.5% | |||
stockholder's equity | 8590 | 7610 | 980 | 12.9% | |||
Total liabilities & stockholders equity | 12990 | 12300 | 690 | 5.6% | |||
b) vertical analysis of the balance sheet data for nike | |||||||
condensed balance sheet | |||||||
$ in million | percent | ||||||
assets | |||||||
current assets | 9600 | 73.9% | |||||
property plant & equipment net | 1810 | 13.9% | |||||
other assets | 1580 | 12.2% | |||||
total assets | 12990 | 100.0% | |||||
liabilities & stockholders equity | |||||||
current liabilities | 3170 | 24.4% | |||||
long term liabilities | 1230 | 9.5% | |||||
stockholder's equity | 8590 | 66.1% | |||||
Total liabilities & stockholders equity | 12990 | 100.0% |
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Exercise 13-05 Hypothetical balance sheets of Nike, Inc. are presented here. NIKE, INC. Condensed Balance Sheet...