Suppose the comparative balance sheets of Nike, Inc. are presented here.Nike, Inc.Comparative Balance SheetsMay 31($ in millions) 2020 2019Assets Current assets $ 9,040 $ 8,000Property, plant, and equipment (net) 2,100 2,000Other assets 1,710 1,900Total assets $ 12,850 $ 11,900Liabilities and Stockholders’ Equity Current liabilities $ 3,069 $ 3,100Long-term liabilities 1,209 1,300Stockholders’ equity 8,572 7,500Total liabilities and stockholders’ equity $ 12,850 $ 11,900(a)Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease as well.) (Enter amounts in millions. Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.) (b)Prepare a vertical analysis of the balance sheet data for Nike for 2020. (Round percentages to 1 decimal place, e.g. 12.3%.)NIKE, INC.Condensed Balance Sheet$ (in millions)PercentAssetsCurrent assets$ 9,040Property, plant, and equipment (net)2,100Other assets1,710Total Assets$ 12,850%Liabilities and Stockholders' EquityCurrent liabilities$ 3,069%Long-term liabilities1,209Stockholders' equity8,572Total liabilities and Stockholders'$ 12,850%Equity Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease aswell.) (Enter amounts in millions. Enter negative amounts and percentages using either a negative sign preceding the number eg. -45, -45% orparentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)NIKE, INC.Condensed Balance Sheet($ in millions)PercentageChange from 2019Increase20202019(Decrease)Assets$$Current assets%9,0408,000Property, plant & equipment (net)2,1002,000Other assets1,7101,900$$Total Assets$%12,85011,900Liabilities and Stockholders'Equity$$Current liabilities$%3,0693,100Long-term liabilities1,2091,300%Stockholders' equity8,5727,500%Total liabilities and$$Stockholders' Equity12,85011,900%24%24%24

A balance sheet is an accounting report that shows a corporation's assets liabilities, and…

Answered: Suppose the comparative balance sheets…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter3: The Adjusting Process

Section: Chapter Questions

Problem 30E

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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	$ 9,040	$ 8,000
Property, plant, and equipment (net)	2,100	2,000
Other assets	1,710	1,900
Total assets	$ 12,850	$ 11,900
Liabilities and Stockholders’ Equity
Current liabilities	$ 3,069	$ 3,100
Long-term liabilities	1,209	1,300
Stockholders’ equity	8,572	7,500
Total liabilities and stockholders’ equity	$ 12,850	$ 11,900

(a)

Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease as well.) (Enter amounts in millions. Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)

(b)
Prepare a vertical analysis of the balance sheet data for Nike for 2020. (Round percentages to 1 decimal place, e.g. 12.3%.)
NIKE, INC.
Condensed Balance Sheet
$ (in millions)
Percent
Assets
Current assets
$ 9,040
Property, plant, and equipment (net)
2,100
Other assets
1,710
Total Assets
$ 12,850
%
Liabilities and Stockholders' Equity
Current liabilities
$ 3,069
%
Long-term liabilities
1,209
Stockholders' equity
8,572
Total liabilities and Stockholders'
$ 12,850
%
Equity

Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease as
well.) (Enter amounts in millions. Enter negative amounts and percentages using either a negative sign preceding the number eg. -45, -45% or
parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
NIKE, INC.
Condensed Balance Sheet
($ in millions)
Percentage
Change from 2019
Increase
2020
2019
(Decrease)
Assets
$
$
Current assets
%
9,040
8,000
Property, plant & equipment (net)
2,100
2,000
Other assets
1,710
1,900
$
$
Total Assets
$
%
12,850
11,900
Liabilities and Stockholders'
Equity
$
$
Current liabilities
$
%
3,069
3,100
Long-term liabilities
1,209
1,300
%
Stockholders' equity
8,572
7,500
%
Total liabilities and
$
$
Stockholders' Equity
12,850
11,900
%24
%24
%24

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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