The financial statements for Nike, Inc. (NKE), are presented in Appendix E at the end of the text. The following additional information is available (in thousands): Accounts receivable at May 31, 2015 $3,358 Inventories at May 31, 2015 4,337 Total assets at May 31, 2015 21,597 Stockholder’s equity at May 31, 2015 12,707 Determine the following measures for the fiscal year ended May 31, 2017 and May 31, 2016. Round ratios and percentages to one decimal place. Working capital. Current ratio. Quick ratio. Accounts receivable turnover. Number of days sales in receivables. Inventory turnover. Number of days sales in inventory. Ratio of liabilities to stockholder’s equity. Asset turnover. Return on total assets, assuming interest expense is $82 million for the year ending May 31, 2017 and $33 million for the year ending May 31, 2016. Return on common stockholder’s equity. Price-earnings ratio, assuming that the market price was $52.81 per share on May 31, 2017 and $54.35 on May 31, 2016. Percentage relationship of net income to sales. What conclusions can be drawn from these analyses? (include profitability, liquidity and solvency)

14th Edition

ISBN:9781305653535

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

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

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.1FSA: Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix 1 at...

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The financial statements for Nike, Inc. (NKE), are presented in Appendix E at the end of the text. The following additional information is available (in thousands):

Accounts receivable at May 31, 2015 $3,358

Inventories at May 31, 2015 4,337

Total assets at May 31, 2015 21,597

Stockholder’s equity at May 31, 2015 12,707

Determine the following measures for the fiscal year ended May 31, 2017 and May 31, 2016. Round ratios and percentages to one decimal place.
Working capital.
Current ratio.
Quick ratio.
Accounts receivable turnover.
Number of days sales in receivables.
Inventory turnover.
Number of days sales in inventory.
Ratio of liabilities to stockholder’s equity.
Asset turnover.
Return on total assets, assuming interest expense is $82 million for the year ending May 31, 2017 and $33 million for the year ending May 31, 2016.
Return on common stockholder’s equity.
Price-earnings ratio, assuming that the market price was $52.81 per share on May 31, 2017 and $54.35 on May 31, 2016.
Percentage relationship of net income to sales.
What conclusions can be drawn from these analyses? (include profitability, liquidity and solvency)

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