Question

For the Fiscal Years Ended May 31, ($'s in millions) 2017 vs. 2016 $ Incr 2017 % Change 2016 $32,376 (Decr) $1,974 1,633 341 17,405 94 2018 $36,397 20,441 15,956 11,511 4,445 120 4,325 2,392 $1,933 $ 1.17 Net Sales Cost of Sales Gross Profit Operating Expenses Operating Income Other (revenues) & expenses Earnings before Taxes Income Tax Expense Net Income EPS 2018 vs. 2017 $ Incr (Decr) % Change $2,047 5.96% #*****### 1,403 7.37% 19,038 644 4.21% 15,312 948 8.97% 10,563 (304) -6.40% 4,749 257 -187.59% (137) (561) -11.48% 4,886 1,746 270.28% ($2,307) -54.41% $4,240 $ (1.34) -53.39% #***# # 14,971 10,469 4,502 6.10% 9.38% 2.28% 0.90% 5.49% 13.22% 5.69% -25.14% 122.77% 16.20% (121 20% 247 (16) 263 (217) $480 $0.35 646 4,623 863 $3,760 $ 2.16 Newer Year-Older Year = $ Increase (Decrease) + Older Year = Percentage Change Nike, Inc. Income Statements: Vertical Analysis For the Fiscal Years Ended Mav 31. S's in millions) Net Sales Cost of Sales Gross Profit Operating Expenses Operating Income Other (revenues) & expenses Earnings before Taxes ncome Tax Expense Net Income 2018 $36,397 20,441 15,956 11,511 4,445 % of Net Sales 100.00% 56.16% 43.84% 31.63% 12.21% 0.33% 11.88% 6.57% 5.31% % of 2017 Net Sales 2016 $34,350 #********# $32,376 19,038 55.42% 17,405 15,312 44.58% 14,971 10,563 30.75% 10,469 4,749 13.83% 4,502 (137) -0.40% (121) 4,886 14.22% 4,623 646 1.88% 863 $4,240 12.34% $3,760 % of Net Sales 100.00% 53.76% 46.24% 32.34% 13.91% -0.37% 14.28% 2.67% 11.61% 120 4,325 2,392 $1,933 EPS

	Current Year	Prior Year	$ Increase (Decrease)	% Increase (Decrease)			REQUIRED: all industry ratio work must be linked to Reuters Industry Data tab
Inventory	5,261	5,055	206	4.08%	all these rows, each column, should be linked to V&H analysis
Sales revenue
Cost of goods sold
Gross profit	15,956	15,312	644	4.21%
Gross profit margin (%)

Answer 1

Horizontal analysis:

Current Year Prior Year $ Increase % Increase (Decrease) (Decrease) 2 Inventory 5261 3 Sales revenue 36397 4 Cost of goods sold 20441 5 Gross profit =B3-B4 6 Gross profit margin (%) =B5/B3 5055 34350 19038 =C3-C4 |=C5/C3 =B2-C2 =B3-C3 =B4-C4 =B5-C5 =B6-C6 =D2/C2 =D3/C3 =D4/C4 =D5/C5 =D6/C6

Following tables shows the values obtained from formulas used in above table:

Current Year Prior Year S Increase Increase (Decrease) (Decrease) 2 Inventory L 3 Sales revenue 4 Cost of goods sold 5 Gross profit 6 Gross profit margin (%) 5,261 36397 20441 15,956 44% 5,055 34350 19038 15,312 45% 206 2,047 1,4031 644 -1% 4.08% 5.96% 7.37% 4.21% -1.65%

Vertical analysis:

% of sales Prior Year % of sales Current Year 10 Inventory 5261 11 Sales revenue 36397 12 Cost of goods sold 20441 13 Gross profit =B11-B12 14 Gross profit margin (%) =B13/B11 =B10/B11 5055 =B11/B11 34350 =B12/B11 19038 =B13/B11 =D11-D12 =D13/D11 =D10/D11 =D11/D11 =D12/D11 =D13/D11

Following tables shows the values obtained from formulas used in above table:

10 Inventory 11 Sales revenue 12 Cost of goods sold 13 Gross profit 14 Gross profit margin (%) Current % of sale Prior Year % of sales Year 5,261 14% 5,055 15% 36397100% 34350 100% 20441 56% 19038 55% 15,956 44% 15,312 45% 44% 45% 1 150