Question

Using the income Statement and Balance Sheet for Nike, can we determine the Liquidity Ratio, Solvency Ratio and Profitability Ratio?

Income Statement:

Annual Income Statement (values in 000's)
Period Ending:	5/31/2017	5/31/2016	5/31/2015	5/31/2014
Total Revenue	$34,350,000	$32,376,000	$30,601,000	$27,799,000
Cost of Revenue	$19,038,000	$17,405,000	$16,534,000	$15,353,000
Gross Profit	$15,312,000	$14,971,000	$14,067,000	$12,446,000
Operating Expenses
Research and Development	$0	$0	$0	$0
Sales, General and Admin.	$10,563,000	$10,469,000	$9,892,000	$8,766,000
Non-Recurring Items	$0	$0	$0	$0
Other Operating Items	$0	$0	$0	$0
Operating Income	$4,749,000	$4,502,000	$4,175,000	$3,680,000
Add'l income/expense items	$196,000	$140,000	$58,000	($103,000)
Earnings Before Interest and Tax	$4,886,000	$4,623,000	$4,205,000	$3,544,000
Interest Expense	$0	$0	$0	$0
Earnings Before Tax	$4,886,000	$4,623,000	$4,205,000	$3,544,000
Income Tax	$646,000	$863,000	$932,000	$851,000
Minority Interest	$0	$0	$0	$0
Equity Earnings/Loss Unconsolidated Subsidiary	$0	$0	$0	$0
Net Income-Cont. Operations	$4,240,000	$3,760,000	$3,273,000	$2,693,000
Net Income	$4,240,000	$3,760,000	$3,273,000	$2,693,000
Net Income Applicable to Common Shareholders	$4,240,000	$3,760,000	$3,273,000	$2,693,000

Balance Sheet:

Top of Form Annual Income Statement (values in 000's) Bottom of Form
Period Ending:	5/31/2017	5/31/2016	5/31/2015	5/31/2014
Current Assets
Cash and Cash Equivalents	$3,808,000	$3,138,000	$3,852,000	$2,220,000
Short-Term Investments	$2,371,000	$2,319,000	$2,072,000	$2,922,000
Net Receivables	$3,677,000	$3,241,000	$3,358,000	$3,789,000
Inventory	$5,055,000	$4,838,000	$4,337,000	$3,947,000
Other Current Assets	$1,150,000	$1,489,000	$1,968,000	$818,000
Total Current Assets	$16,061,000	$15,025,000	$15,587,000	$13,696,000
Long-Term Assets
Long-Term Investments	$0	$0	$0	$0
Fixed Assets	$3,989,000	$3,520,000	$3,011,000	$2,834,000
Goodwill	$139,000	$131,000	$131,000	$131,000
Intangible Assets	$283,000	$281,000	$281,000	$282,000
Other Assets	$0	$0	$0	$0
Deferred Asset Charges	$2,787,000	$2,422,000	$2,587,000	$1,651,000
Total Assets	$23,259,000	$21,379,000	$21,597,000	$18,594,000
Current Liabilities
Accounts Payable	$5,143,000	$5,313,000	$6,151,000	$4,853,000
Short-Term Debt / Current Portion of Long-Term Debt	$331,000	$45,000	$181,000	$174,000
Other Current Liabilities	$0	$0	$0	$0
Total Current Liabilities	$5,474,000	$5,358,000	$6,332,000	$5,027,000
Long-Term Debt	$3,471,000	$1,993,000	$1,079,000	$1,199,000
Other Liabilities	$0	$0	$0	$0
Deferred Liability Charges	$1,907,000	$1,770,000	$1,479,000	$1,544,000
Misc. Stocks	$0	$0	$0	$0
Minority Interest	$0	$0	$0	$0
Total Liabilities	$10,852,000	$9,121,000	$8,890,000	$7,770,000
Stock Holders Equity
Common Stocks	$3,000	$3,000	$3,000	$3,000
Capital Surplus	$8,638,000	$7,786,000	$6,773,000	$5,865,000
Retained Earnings	$3,979,000	$4,151,000	$4,685,000	$4,871,000
Treasury Stock	$0	$0	$0	$0
Other Equity	($213,000)	$318,000	$1,246,000	$85,000
Total Equity	$12,407,000	$12,258,000	$12,707,000	$10,824,000
Total Liabilities & Equity	$23,259,000	$21,379,000	$21,597,000	$18,594,000 Bottom of Form

Answer 1

Yes, We Can determine the Liquidity ratio, Solvency ratio and Profitability ratio from the given Balance sheet and Income statement as shown below: