Question

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

NIKE, INC. Condensed Balance Sheet May 31 ($ in millions)
		2022		2021
Assets
Current Assets		$9,800		$8,760
Property, plant, and equipment (net)		1,970		1,800
Other assets		1,550		1,770
Total assets		$13,320		$12,330
Liabilities and Stockholders' Equity
Current Liabilities		$3,294		$3,320
Long-term liabilities		1,287		1,350
Stockholders’ equity		8,739		7,660
Total liabilities and stockholders' equity		$13,320		$12,330

(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		$9,800		$8,760		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Property, plant, and equipment (net)		1,970		1,800		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Other assets		1,550		1,770		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Total assets		$13,320		$12,330		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Liabilities and Stockholders' Equity
Current Liabilities		$3,294		$3,320		$enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Long-term liabilities		1,287		1,350		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Stockholders’ equity		8,739		7,660		enter a dollar amount		enter percentages rounded to 1 decimal place rounded to 1 decimal place	%
Total liabilities and stockholders' equity		$13,320		$12,330		$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                                                          For the Month Ended May 31, 2022May 31, 2022For the Year Ended May 31, 2022
		$ (in millions)		Percent
Assets
Current Assets		$9,800		enter percentages rounded to 1 decimal place	%
Property, plant, and equipment (net)		1,970		enter percentages rounded to 1 decimal place	%
Other assets		1,550		enter percentages rounded to 1 decimal place	%
Total assets		$13,320		enter percentages rounded to 1 decimal place	%
Liabilities and Stockholders' Equity
Current Liabilities		$3,294		enter percentages rounded to 1 decimal place	%
Long-term Liabilities		1,287		enter percentages rounded to 1 decimal place	%
Stockholders’ equity		8,739		enter percentages rounded to 1 decimal place	%
Total liabilities and stockholders' equity		$13,320		enter percentages rounded to 1 decimal place	%

Answer 1

Solution 1:

NIKE, INC.
Condensed Balance Sheet
May-31
($ in millions)
	2022	2021	Incraese (Decrease)	percentage change
Assets
Current Assets	9800	8760	1040	11.9%
Property, plant, and equipment (net)	1,970	1,800	170	9.4%
Other assets	1,550	1,770	-220	-12.4%
Total assets	13320	12330	990	8.0%
Liabilities and Stockholders' Equity
Current Liabilities	3294	3320	-26	-0.8%
Long-term liabilities	1,287	1,350	-63	-4.7%
Stockholders’ equity	8,739	7,660	1079	14.1%
Total liabilities and stockholders' equity	13320	12330	990	8.0%

Solution 2:

NIKE, INC.
Condensed Balance Sheet
May-31
($ in millions)
	2022	percentage change
Assets
Current Assets	9800	73.6%
Property, plant, and equipment (net)	1,970	14.8%
Other assets	1,550	11.6%
Total assets	13320	100.0%
Liabilities and Stockholders' Equity
Current Liabilities	3294	24.7%
Long-term liabilities	1,287	9.7%
Stockholders’ equity	8,739	65.6%
Total liabilities and stockholders' equity	13320	100.0%