Question

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

NIKE, INC. Condensed Balance Sheet May 31 ($ in millions)
		2022		2021
Assets
Current Assets		$9,500		$8,880
Property, plant, and equipment (net)		1,950		1,830
Other assets		1,530		1,640
Total assets		$12,980		$12,350
Liabilities and Stockholders' Equity
Current Liabilities		$3,200		$3,300
Long-term liabilities		1,250		1,270
Stockholders’ equity		8,530		7,780
Total liabilities and stockholders' equity		$12,980		$12,350

(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 2016
Assets
Current Assets		$9,500		$8,880		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Property, plant, and equipment (net)		1,950		1,830		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Other assets		1,530		1,640		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Total assets		$12,980		$12,350		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Liabilities and Stockholders' Equity
Current Liabilities		$3,200		$3,300		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Long-term liabilities		1,250		1,270		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Stockholders’ equity		8,530		7,780		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Total liabilities and stockholders' equity		$12,980		$12,350		$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 Month Ended May 31, 2022For the Year Ended May 31, 2022
		$ (in millions)		Percent
Assets
Current Assets		$9,500		enter percentages rounded to 1 decimal place	%
Property, plant, and equipment (net)		1,950		enter percentages rounded to 1 decimal place	%
Other assets		1,530		enter percentages rounded to 1 decimal place	%
Total assets		$12,980		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		1,250		enter percentages rounded to 1 decimal place	%
Stockholders’ equity		8,530		enter percentages rounded to 1 decimal place	%
Total liabilities and stockholders' equity		$12,980		enter percentages rounded to 1 decimal place	%

Answer 1

1) Horizontal Analysis of Balance Sheet

NIKE INC.
HORIZONTAL ANALYSIS OF BALANCE SHEET
Particulars	Year	Increase or Decrease
2022	2021	Amount	%
Current Assets	9,500	8,880	620	7.0%
Property,Plant and Equipment	1,950	1,830	120	6.6%
Other Asset	1,530	1,640	(110)	-6.7%
Total Asset	12,980	12,350	630	5.1%
Liabilities and Stock Holders Equity
Current Liabilities	3,200	3,300	(100)	-3.0%
Long Term Liabilities	1,250	1,270	(20)	-1.6%
Stock Holders Equity	8,530	7,780	750	9.6%
Total Liabilities and Stock Holders Equity	12,980	12,350	630	5.1%

Here Change in Amount Calculated by the formula of

Amount in Current or comparison year - Amount in base or previous year

here change in in percentage calculated from the formula of

Change in amount / Balance in base or previous year x 100%

2) Vertical Analysis of Balance Sheet

NIKE INC.
VERTICAL ANALYSIS OF BALANCE SHEET
Particulars	Year	Percentage
2022	%
Current Assets	9,500	73.2%
Property,Plant and Equipment	1,950	15.0%
Other Asset	1,530	11.8%
Total Asset	12,980	100.0%
Liabilities and Stock Holders Equity
Current Liabilities	3,200	24.7%
Long Term Liabilities	1,250	9.6%
Stock Holders Equity	8,530	65.7%
Total Liabilities and Stock Holders Equity	12,980	100.0%

Here percentage calculated by the formula of

For asset items

Asset Items / Total Assets x 100%

For Liability items

Liability or capital items / Total Liabilities and Stock holders equity x 100%