Question

B-4 Appendix B Nike Inc., Form 10-K For the Fiscal Year Ended May 31, 2013 NIKE, Inc. Consolidated Statements of Income Year Ended May 31, 2012 2013 2011 $ (In millions except per share data) Income from continuing operations: Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest (income) expense, net (Notes 6, 7 and 8) Other (income) expense, net (Note 17) Income before income taxes Income tax expense (Note 9) NET INCOME FROM CONTINUING OPERATIONS NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS NET INCOME 25,313 14,279 11,034 2,745 5,035 7,780 23,331 $ 13,183 10.148 2,607 4.458 7,065 20.117 10,915 9,202 2,344 4,017 6,361 (25) (15) 3.272 808 2,464 21 54 3,025 756 2.269 (46) (46) 2,223 $ 2.862 690 2,172 (39) 2,133 2,485 $ Earnings per share from continuing operations: Basic earnings per common share (Notes 1 and 12) Diluted earnings per common share (Notes 1 and 12) 2.75 2.69 $ $ 2.47 S 2.42 $ 2.28 2.24 Earnings per share from discontinued operations: Basic earnings per common share (Notes 1 and 12) Diluted earnings per common share (Notes 1 and 12) 0.02 $ 0.02 $ (0.05) $ (0.05) $ (0.04) (0.04) Dividends declared per common share 0.81 $ 0.70 $ 0,60 The accompaviying notes to consolidated financial statements are an integral part of this statement

Do a vertical analysis for Nike’s Income Statement for 2013

Answer 1

VERTICAL ANALYSIS OF INCOME STATEMENT OF NIKE INC. FOR 2013

PARTICULARS	AMOUNT ($ IN MILLIONS)	AMOUNT IN %
Revenues	25313	100
Cost of Sales	14279	56.41
Gross Profit	11034	43.59
Demand Creation Expense	2745	10.84
Operating overhead expense	5035	19.89
Total Selling and admin expense	7780	30.73
Interest (income)/expense	(3)	(0.011)
Other (income)/expense	(15)	(0.059)
Income before taxes	3272	12.93
Income tax	808	3.19
Net income from continuing operations	2464	9.73
Net income from discontinuing operations	21	0.083
Net Income	2485	9.82