Question

Hypothetical balance sheets of Nike, Inc. are presented here. 

(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, es -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, es. 12.5%) 

b) Prepare a vertical analysis of the balance sheet data for Nike for 2022 NIKE

Answer 1

horizontal analysis

Particulars	2022 (a)	2021 (b)	Increase/Decrease (a)-(b) = (c)	Percentage change % (c ) / (b) x 100
Current Assets	9770	8770	1000	11.40
Property Plant Equipment	1820	1800	20	1.11
other assets	1600	1740	(140)	(8.04)
Total Assets	13190	12310	880	7.14
Liabilities & Stockholders
Current Liabilities	3262	3340	(78)	(2.33)
Long term Liabilities	1274	1380	(106)	(7.68)
Stockholders equity	8654	7590	1064	14.01
Total Liabilities & Stockholders	13190	12310	880	7.14

Vertical Analysis

Particulars	2022	Percent	Calculation
Current Assets	9770	74.07	9770 / 13190 x 100
Property Plant Equipment	1820	13.80	1820 / 13190 x 100
other assets	1600	12.13	1600 / 13190 x 100
Total Assets	13190
Liabilities & Stockholders
Current Liabilities	3262	24.72	3262 / 13190 x 100
Long term Liabilities	1274	9.66	1274 / 13190 x 100
Stockholders equity	8654	65.62	8654 / 13190 x 100
Total Liabilities & Stockholders	13190

Answer 2

Answer:

A B E F 3 с D Condensed balance sheet As at May 31 ($ in millions) 4. 5 Increase Percentage (Decrease) change from 2021 6 2022 2021 7 8 1,000 20 11.4% 1.1% 9 9,770 8,770 1,820 1,800 1,600 1,740 13,190 12,310 10 -140 -8.0% 11 880 7.1% Assets: Current assets Property, plant, and equipment (net) Other assets Total assests Liabilities and stockholders' equity: Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity 12 13 -78 -106 14 3,262 1,274 8,654 13,190 3,340 1,380 7,590 12,310 -2.3% -7.7% 14.0% 15 1,064 16 880 7.1% 17 18 19 20 21 22 23 24 25 NIKE INC. Condensed balance sheet As on May 2022 (in millions) percent Assets: Current assets 9,770 74.1% Property, plant, and equipment (net) 1,820 13.8% Other assets 1,600 12.1% Total assests 13,190 100.00% Liabilities and stockholders' equity: Current liabilities 3,262 24.7% Long-term liabilities 1,274 9.7% Stockholders' equity 8,654 65.6% Total liabilities and stockholders' equity 13,190 100.00% 26 27 28 29 30 31

A B с E F 3 4 Condensed balance sheet As at May 31 ($ in millions) 5 2022 2021 Increase (Decrease) Percentage change from 2021 6 7 8 9 =C8-08 Assets: Current assets Property, plant, and equipment (net) Other assets 9770 1820 8770 1800 =C9-09 =C10-010 =E8/D8 =E9/D9 =E10/D10 =E11/D11 10 1600 1740 11 12 13 Total assests =SUM(C8:C10) =SUM(D8:010) =C11-D11 Liabilities and stockholders' equity: Current liabilities 3262 3340 =C13-D13 Long-term liabilities 1274 1380 =C14-D14 Stockholders' equity 8654 7590 =C15-D15 Total liabilities and stockholders' equity =SUM(C13:C15) =SUM(D13:015) =C16-016 14 =E13/D13 =E14/D14 =E15/D15 =E16/016 15 16 17 18 19 20 21 22 23 24 25 NIKE INC. Condensed balance sheet As on May 2022 (in millions) percent Assets: Current assets 9770 =C23/13190 Property, plant, and equipment (net) 1820 =C24/13190 Other assets 1600 =C25/13190 Total assests ESUM(C23:025) 1 Liabilities and stockholders' equity: Current liabilities 3262 =C28/13190 Long-term liabilities 1274 =C29/13190 Stockholders' equity 8654 =C30/13190 Total liabilities and stockholders' equity ESUM(C28:C30) 1 26 27 28 29 30 31