Question

Suppose the comparative balance sheets of Nike, Inc. are presented here.

Nike, Inc. Condensed Balance Sheet May 31 ($ in millions)
		2020		2019
Assets
Current Assets		$9,600		$8,830
Property, plant, and equipment (net)		2,000		1,900
Other assets		1,500		1,700
Total assets		$13,100		$12,430
Liabilities and Stockholders' Equity
Current Liabilities		$3,240		$3,320
Long-term liabilities		1,200		1,340
Stockholders’ equity		8,660		7,770
Total liabilities and stockholders' equity		$13,100		$12,430

(a) Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

NIKE, INC. Condensed Balance Sheet May 31 ($ in millions)
		2020		2019		Increase (Decrease)		Percentage Change from 2019
Assets
Current Assets		$9,600		$8,830		$			%
Property, plant, and equipment (net)		2,000		1,900					%
Other assets		1,500		1,700					%
Total assets		$13,100		$12,430		$			%
Liabilities and Stockholders' Equity
Current Liabilities		$3,240		$3,320		$			%
Long-term liabilities		1,200		1,340					%
Stockholders’ equity		8,660		7,770					%
Total liabilities and stockholders' equity		$13,100		$12,430		$			%

(b) Prepare a vertical analysis of the balance sheet data for Nike for 2020.

NIKE, INC. Condensed Balance Sheet For the Year Ended May 31, 2020For the Month Ended May 31, 2020May 31, 2020
		$ (in millions)		Percent
Assets
Current Assets		$9,600			%
Property, plant, and equipment (net)		2,000			%
Other assets		1,500			%
Total assets		$13,100			%
Liabilities and Stockholders' Equity
Current Liabilities		$3,240			%
Long-term Liabilities		1,200			%
Stockholders’ equity		8,660			%
Total liabilities and stockholders' equity		$13,100			%

Answer 1