Question

Hypothetical balance sheets of Nike, Inc. are presented here.

NIKE, INC. Condensed Balance Sheet May 31 ($ in millions)
		2022		2021
Assets
Current Assets		$9,670		$8,740
Property, plant, and equipment (net)		1,900		1,850
Other assets		1,590		1,690
Total assets		$13,160		$12,280
Liabilities and Stockholders' Equity
Current Liabilities		$3,200		$3,320
Long-term liabilities		1,270		1,320
Stockholders’ equity		8,690		7,640
Total liabilities and stockholders' equity		$13,160		$12,280

(a) Prepare a horizontal analysis of the balance sheet data for Nike, using 2021 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. 12.5%.)

NIKE, INC. Condensed Balance Sheet May 31 ($ in millions)
		2022		2021		Increase (Decrease)		Percentage Change from 2021
Assets
Current Assets		$9,670		$8,740		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Property, plant, and equipment (net)		1,900		1,850		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Other assets		1,590		1,690		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Total assets		$13,160		$12,280		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Liabilities and Stockholders' Equity
Current Liabilities		$3,200		$3,320		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Long-term liabilities		1,270		1,320		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Stockholders’ equity		8,690		7,640		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Total liabilities and stockholders' equity		$13,160		$12,280		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%

(b) Prepare a vertical analysis of the balance sheet data for Nike for 2022.

NIKE, INC. Condensed Balance Sheet choose the accounting period                                                          May 31, 2022For the Year Ended May 31, 2022For the Month Ended May 31, 2022
		$ (in millions)		Percent
Assets
Current Assets		$9,670		enter percentages rounded to 1 decimal place	%
Property, plant, and equipment (net)		1,900		enter percentages rounded to 1 decimal place	%
Other assets		1,590		enter percentages rounded to 1 decimal place	%
Total assets		$13,160		enter percentages rounded to 1 decimal place	%
Liabilities and Stockholders' Equity
Current Liabilities		$3,200		enter percentages rounded to 1 decimal place	%
Long-term Liabilities		1,270		enter percentages rounded to 1 decimal place	%
Stockholders’ equity		8,690		enter percentages rounded to 1 decimal place	%
Total liabilities and stockholders' equity		$13,160		enter percentages rounded to 1 decimal place	%

Answer 1

A. Nike Inc.

Consolidated balance sheet

May 31

($ in million)

	(A)	(B)	(B-A) = C	(C/B)*100
	2022	2021	INCREASE/(DECREASE)	PERCENTAGE CHANGE FROM 2021
ASSETS
CURRENT ASSETS	9670	8740	930	10.64%
PPE (NET)	1900	1850	50	2.7%
OTHER ASSETS	1590	1690	-100	-5.92%
TOTAL ASSETS	13160	12280	880	7.16%
LIABILITY AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES	3200	3320	-120	-3.61%
LONG TERM LIABILITIES	1270	1320	-50	-3.79%
SHAREHOLDERS EQUITY	8690	7640	1050	13.74%
TOTAL LIABILITY AND SHAREHOLDERS EQUITY	13160	12280	880	7.17%

B.

Nike Inc.

Consolidated balance sheet

	A	(A/1360)*100
ASSETS
CURRENT ASSETS	9670	73.5%
PPE (NET)	1900	14.4%
OTHER ASSETS	1590	12.1%
TOTAL ASSETS	13160	100%
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES	3200	24.3%
LONG TERM LIABILITIES	1270	9.7%
SHAREHOLDER EQUITY	8690	66%
LIABILITIES AND SHAREHOLDERS EQUITY	13160	100%