Question Description
I need help with a Management question. All explanations and answers will be used to help me learn.
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Hypothetical balance sheets of Nike, Inc. are presented here.
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NIKE, INC.
Condensed Balance Sheet
May 31
($ in millions)
2022
2021
Assets
Current Assets
$9,600
$8,790
Property, plant, and equipment (net)
1,810
1,800
Other assets
1,580
1,710
Total assets
$12,990
$12,300
Liabilities and Stockholders’ Equity
Current Liabilities
$3,170
$3,300
Long-term liabilities
1,230
1,390
Stockholders equity
8,590
7,610
Total liabilities and stockholders’ equity
$12,990
$12,300
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(a) Prepare a horizontal analysis of the balance sheet data for Nike, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.5%.)
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NIKE, INC.
Condensed Balance Sheet
May 31
($ in millions)
2022
2021
Increase
(Decrease)
Percentage
Change
from 2021
Assets
Current Assets
$9,600
$8,790
$enter a dollar amount
enter percentages rounded to 1 decimal place rounded to 1 decimal place
%
Property, plant, and equipment (net)
1,810
1,800
enter a dollar amount
enter percentages rounded to 1 decimal place rounded to 1 decimal place
%
Other assets
1,580
1,710
enter a dollar amount
enter percentages rounded to 1 decimal place rounded to 1 decimal place
%
Total assets
$12,990
$12,300
$enter a dollar amount
enter percentages rounded to 1 decimal place rounded to 1 decimal place
%
Liabilities and Stockholders’ Equity
Current Liabilities
$3,170
$3,300
$enter a dollar amount
enter percentages rounded to 1 decimal place rounded to 1 decimal place
%
Long-term liabilities
1,230
1,390
enter a dollar amount
enter percentages rounded to 1 decimal place rounded to 1 decimal place
%
Stockholders equity
8,590
7,610
enter a dollar amount
enter percentages rounded to 1 decimal place rounded to 1 decimal place
%
Total liabilities and stockholders’ equity
$12,990
$12,300
$enter a dollar amount
enter percentages rounded to 1 decimal place rounded to 1 decimal place
%
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(b) Prepare a vertical analysis of the balance sheet data for Nike for 2022.
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NIKE, INC.
Condensed Balance Sheet
choose the accounting period May 31, 2022 For the Year Ended May 31, 2022 For the Month Ended May 31, 2022
$ (in millions)
Percent
Assets
Current Assets
$9,600
enter percentages rounded to 1 decimal place
%
Property, plant, and equipment (net)
1,810
enter percentages rounded to 1 decimal place
%
Other assets
1,580
enter percentages rounded to 1 decimal place
%
Total assets
$12,990
enter percentages rounded to 1 decimal place
%
Liabilities and Stockholders’ Equity
Current Liabilities
$3,170
enter percentages rounded to 1 decimal place
%
Long-term Liabilities
1,230
enter percentages rounded to 1 decimal place
%
Stockholders equity
8,590
enter percentages rounded to 1 decimal place
%
Total liabilities and stockholders’ equity
$12,990
enter percentages rounded to 1 decimal place
%
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