Question

Exercise 13-05 

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

NIKE, INC.  Condensed Balance Sheet May 31 ($ in millions) 

(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) 

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

NIKE, INC. Condensed Balance Sheet

Answer 1

Ans. 1	NIKE INC.
	Condensed Balance Sheet
	For the Month Ended May 31, 2022 and 2021
		2022	2021	Amount change	Percentage change
	Assets
	Current assets	$9,600	$8,790	$810	9.2%
	Property, plant and equipment	$1,810	$1,800	$10	0.6%
	Other assets	$1,580	$1,710	-$130	-7.6%
	Total assets	$12,990	$12,300	$690	5.6%
	Liabilities and Owner's Equity
	Current liabilities	$3,170	$3,300	-$130	-3.9%
	Long term liabilities	$1,230	$1,390	-$160	-11.5%
	Stockholder's equity	$8,590	$7,610	$980	12.9%
	Total Liabilities and stockholder's equity	$12,990	$12,300	$690	5.6%
	Change in amount = Particular amount of current year 2022 - Particular amount of previous year 2021
	Change in percentage = Change in amount / particular amount of base (2021) or previous year * 100
Ans. 2	NIKE INC.
	Condensed Balance Sheet
	For the Month Ended May 31, 2022
		in millions	Percent
	Assets
	Current assets	$9,600	73.9%
	Property, plant and equipment	$1,810	13.9%
	Other assets	$1,580	12.2%
	Total assets	$12,990	100.0%
	Liabilities and Owner's Equity
	Current liabilities	$3,170	24.4%
	Long term liabilities	$1,230	9.5%
	Stockholder's equity	$8,590	66.1%
	Total Liabilities and stockholder's equity	$12,990	100.0%
	*Calculations for Common Size Balance Sheet:
	Amount is percentage from assets side (2022) =   Particular amount from assets side (2022) / Total assets (2022) * 100
	Amount is percentage from liabilities side (2022) =   Particular amount from liability side (2022)/ Total liabilities and owner's equity (2022) * 100