E1-15 Suppose the following items were taken from the balance sheet of Nike, Inc. (Alldollars are in millions.)7. Inventory8. Income taxes payable9. Equipment10. Retained earnings11. Accounts payable$2,357.0$2,291.12. Accounts receivable 2,883.92,874.21. Cash86.33. Common stock1,957.75,818.92,815.84. Notes payable5. Buildings6. Mortgage payable342.93,759.91,311.5InstructionsPerform each of the following.(a) Classify each of these items as an asset, liability, or stockholders' equity, and deter-mine the total dollar amount for each classification.(b) Determine Nike's accounting equation by calculating the value of total assets, totalliabilities, and total stockholders' equity.(c) To what extent does Nike rely on debt versus equity financing?

Question
Asked Feb 11, 2020
80 views
E1-15 Suppose the following items were taken from the balance sheet of Nike, Inc. (All
dollars are in millions.)
7. Inventory
8. Income taxes payable
9. Equipment
10. Retained earnings
11. Accounts payable
$2,357.0
$2,291.1
2. Accounts receivable 2,883.9
2,874.2
1. Cash
86.3
3. Common stock
1,957.7
5,818.9
2,815.8
4. Notes payable
5. Buildings
6. Mortgage payable
342.9
3,759.9
1,311.5
Instructions
Perform each of the following.
(a) Classify each of these items as an asset, liability, or stockholders' equity, and deter-
mine the total dollar amount for each classification.
(b) Determine Nike's accounting equation by calculating the value of total assets, total
liabilities, and total stockholders' equity.
(c) To what extent does Nike rely on debt versus equity financing?
help_outline

Image Transcriptionclose

E1-15 Suppose the following items were taken from the balance sheet of Nike, Inc. (All dollars are in millions.) 7. Inventory 8. Income taxes payable 9. Equipment 10. Retained earnings 11. Accounts payable $2,357.0 $2,291.1 2. Accounts receivable 2,883.9 2,874.2 1. Cash 86.3 3. Common stock 1,957.7 5,818.9 2,815.8 4. Notes payable 5. Buildings 6. Mortgage payable 342.9 3,759.9 1,311.5 Instructions Perform each of the following. (a) Classify each of these items as an asset, liability, or stockholders' equity, and deter- mine the total dollar amount for each classification. (b) Determine Nike's accounting equation by calculating the value of total assets, total liabilities, and total stockholders' equity. (c) To what extent does Nike rely on debt versus equity financing?

fullscreen
check_circle

Expert Answer

a. Classify and calculate the total of the items asset, liabilities or stockholder's equity.

Accounting homework question answer, step 1, image 1

Accounting homework question answer, step 1, image 2

Accounting homework question answer, step 1, image 3

b. Determine the accounting equation.

Accounting homework question answer, step 2, image 1

...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Question text Compute hourly rate and overtime rates as follows:  1. Carry the hourly rate and t...

A: Compute Larisa pay for this biweekly pay period as shown below:   Payment for 40 hours week as below...

question_answer

Q: A project has an estimated cost of $200,000 with an estimated revenue of $400,000. What is the BCR?

A: Benefit-cost ratio (BCR): It is a ratio that shows the relationship between the relative costs and b...

question_answer

Q: Transactions of Edwardson Corporation. The company uses the periodic inventory system. On February 2...

A: Step 1: Journal entry: Compute the purchases after cash discount as follows:

question_answer

Q: Extinguishment of Bonds Prior to Maturity On December 1, 2017, Cone Company issued its 9%, $510,000 ...

A: Bond is an instrument which represent the amount of loan raised by the borrower from the lender. It ...

question_answer

Q: Purchases Journal The following purchase transactions occurred during October for K-Town Inc.: Purch...

A: Purchase journal: A purchase journal is a book, where all purchases made on account are recorded.

question_answer

Q: Sam and Sue are married and age 65.  Sam has a full time job that pays $80,000 and Sue's full time j...

A: Social security benefits are not taxable in case it is the only income that a person receives in a y...

question_answer

Q: Why is it important that a firm prepares a budget and how they analyze the ongoing performance? What...

A: Budgeting is a financial plan that helps the organization in effective utilization of its resources....

question_answer

Q: Discuss the role of conversion cycle for service and retailing entities

A: Transaction Cycles: The similar transactions of an organization are grouped together to form a tran...

question_answer

Q: What areadvantges and disadvantages of the corporate form of business organazations?

A: Business organization: The organization which is established with the motive of earning profit is ca...