Question

Include in your report the answers to the questions listed below. Also, remember to include the source of your answer, by indicating the document (SEC Form 10-K, or Proxy Statement) and page number where the answer was found.

-Company: Nike Company

-Use the 2019 10-k Annual report

(No need to be long answers and can be obtained directly from 10-k form, but please state the page the answers were found).  

I:Background

a. Name of the company

b. Fiscal year covered by the annual report

c. Stock exchange where shares are traded and stock ticker symbol

d. State of incorporation

e. Describe the company’s business(es), e.g., types of products manufactured.

II:Audit report

a. Who are the company’s auditors?

b. What opinion did the auditors issue?

c. Did the auditors examine all the evidence supporting the amounts and disclosures in all of the financial statements? Explain.

d. What is the auditor’s responsibility for the financial statements?

e. What is management’s responsibility?

f. Under the Sarbanes-Oxley Act of 2002, reports on internal control are required. Did the company’s management acknowledge its responsibility for establishing and maintaining adequate internal control over financial reporting? What is the auditor’s opinion on the effectiveness of the company’s internal controls?

g. What was their internal control system designed to do?

h. In accordance with what standards did the auditors conduct the audit?

III:Profitability

a. What is the net income for the year covered by the report? How does net income compare to previous years? Why did net income increase or decrease?

b. When is revenue recognized?

c. What effective income tax rate is the company experiencing?

d. How are customer coupons, discounts, and rebates treated in the financial statements?

e. Is their business seasonal?

IV:Assets

a. What is the company’s largest current asset?

b. What items are classified as cash equivalents?

c. What are trade vs. nontrade accounts receivables?

d. What was the balance at year end for Allowance for Doubtful Accounts for accounts receivables?

e. What categories of inventory does the company report on its balance sheet? What inventory accounting method(s) does the company utilize?

f. What are the company’s depreciable assets? What method(s) of depreciation does the company use?

g. What kinds of intangible assets does the company have?

h. How much goodwill is on the balance sheet and how is it defined?

V: Liabilities

a. What are the company’s major liabilities?

b. How much does the company owe within the next fiscal year?

c. How much long-term debt is due and payable? How much of the long-term debt is due within the next fiscal year?

Answer 1

As per policy, only the first 4 subparts are being answered. Please ask the remaining subparts seperately.

Note:- All the below mentioned pages are of Nike 10-K (PDF) on Nike Official Website for year 2019.

a. Name of the company:- NIKE, Inc. (Page 2 of PDF)

b. Fiscal year covered by the annual report:- FISCAL YEAR ENDED MAY 31, 2019 (Page 2 of PDF)

c. Stock exchange where shares are traded and stock ticker symbol:-  New York Stock Exchange, NKE (Page 2 of PDF)

d. State of incorporation:- OREGON (Page 2 of PDF)

e. Describe the company’s business(es), e.g., types of products manufactured.:- Principal business activity is the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services. (Page 4 of PDF)