Chapter Review
17-8iNike, Inc., Problem
Financial Statement Analysis
The financial statements for Nike, Inc., are presented in Appendix C at the end of the text. Use the following additional information (in millions):
Accounts receivable at May 31, 2016 |
$ 3,241 |
Inventories at May 31, 2016 |
4,838 |
Total assets at May 31, 2016 |
21,379 |
Stockholders’ equity at May 31, 2016 |
12,258 |
Instructions
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Determine the following measures for the fiscal years ended May 31, 2018, and May 31, 2017. Round ratios and percentages to one decimal place.
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Working capital
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Current ratio
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Quick ratio
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Accounts receivable turnover
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Number of days’ sales in receivables
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Inventory turnover
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Number of days’ sales in inventory
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Ratio of liabilities to stockholders’ equity
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Asset turnover
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Return on total assets.
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Return on common stockholders’ equity
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Price-earnings ratio, assuming that the market price was $72.12 per share on May 29, 2018, and $53.06 per share on May 30, 2017
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What conclusions can be drawn from these analyses?