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Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at the end of the text. Use the following additional information (in thousands): Accounts receivable at May 31, 2014 $ 3,117 Inventories at May 31,2014 4,142 Total assets at May 31, 2014 18,594 Stockholders’ equity at May 31,2014 12,000 Instructions 1. Determine the following measures for the fiscal years ended May 31, 2016, and May 31, 2015 Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days’ sales in receivables f. Inventory turnover g. Number of days’ sales in inventory h. Ratio of liabilities to stockholders’ equity i. Asset turnover j. Return on total assets. k. Return on common stockholders’ equity l. Price-earnings ratio, assuming that the market price was $54.90 per share on May 29, 2016, and $52.81 per share on May 30, 2015 m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?

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Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 17, Problem 1FSA
Textbook Problem

Financial statement analysis

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

Accounts receivable at May 31, 2014 $ 3,117
Inventories at May 31,2014 4,142
Total assets at May 31, 2014 18,594
Stockholders’ equity at May 31,2014 12,000

Instructions

1. Determine the following measures for the fiscal years ended May 31, 2016, and May 31, 2015 Round ratios and percentages to one decimal place.

  1. a. Working capital
  2. b. Current ratio
  3. c. Quick ratio
  4. d. Accounts receivable turnover
  5. e. Number of days’ sales in receivables
  6. f. Inventory turnover
  7. g. Number of days’ sales in inventory
  8. h. Ratio of liabilities to stockholders’ equity
  9. i. Asset turnover
  10. j. Return on total assets.
  11. k. Return on common stockholders’ equity
  12. l. Price-earnings ratio, assuming that the market price was $54.90 per share on May 29, 2016, and $52.81 per share on May 30, 2015
  13. m. Percentage relationship of net income to sales

2. What conclusions can be drawn from these analyses?

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Chapter 17 Solutions

Accounting
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