Question

Exercise 18-05 Suppose the comparative balance sheets of Nike, Inc. are presented here. Nike, Inc. Comparative Balance Sheets May 31 ($ in millions) 2020 2019 Assets Current assets Property, plant, and equipment (net) Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $9,682 $9,400 1,700 1,600 $13,375 $12,700 2,125 1,568 $ 3,038 3,100 1,300 8,300 $13,375 $12,700 1,248 9,089

Answer 1

NIKE INC
	2020	2019	Increase (Decrease)	Percentage Change from 2019
Assets
Current assets	$              9,682	$            9,400	$                282	3.0%
Property, plant & equipment (net)	$              2,125	$            1,700	$                425	25.0%
Other assets	$              1,568	$            1,600	$                 -32	-2.0%
Total assets	$           13,375	$          12,700	$                675	5.3%
Liabilities and Stockholders' Equity			$                   -
Current liabilities	$              3,038	$            3,100	$                 -62	-2.0%
Long term liabilities	$              1,248	$            1,300	$                 -52	-4.0%
Stockholders' equity	$              9,089	$            8,300	$                789	9.5%
Total liabilities and stockholders' equity	$           13,375	$          12,700	$                675	5.3%
	2020
Assets	$ [in millions]	Percent
Current assets	$              9,682	72.4%
Property, plant & equipment (net)	$              2,125	15.9%
Other assets	$              1,568	11.7%
Total assets	$           13,375	100.0%
Liabilities and Stockholders' Equity
Current liabilities	$              3,038	22.7%
Long term liabilities	$              1,248	9.3%
Stockholders' equity	$              9,089	68.0%
Total liabilities and stockholders' equity	$           13,375	100.0%
CONDENSED INCOME STATEMENT
	Duke Company		Lord Company
Net sales	$     18,30,000	100.0%	$      5,59,000	100.0%
Cost of goods sold	$     10,99,830	60.1%	$      2,96,829	53.1%
Operating expenses	$        2,69,010	14.7%	$          78,260	14.0%
Interest expense	$              7,320	0.4%	$            3,913	0.7%
Income tax expense	$           54,900	3.0%	$            6,149	1.1%
Current assets	$        3,23,000	38.3%	$          83,200	37.4%
Plant assets (net)	$        5,19,300	61.7%	$      1,39,200	62.6%
Current liabilities	$           65,200	7.7%	$          36,800	16.5%
Long term liabilities	$        1,08,000	12.8%	$          29,800	13.4%
Common stock, $10 par	$        5,00,000	59.4%	$      1,17,000	52.6%
Retained earnings	$        1,69,100	20.1%	$          38,800	17.4%
Net income	$        3,98,940		$      1,73,849
Average total assets	$        8,27,800		$      2,12,900
Average total equity	$        6,58,600		$      1,52,300
Return on assets	48.2%		81.7%
Return on common stockholders' equity	60.6%		114.1%