Question

 Suppose the comparative balance sheets of Nike, Inc. are presented here.

 Nike, Inc.

 Comparative Balance Sheets

 May 31

 ($ in millions)

 (a)

 Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease as well.) (Enter amounts in millions. Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)

 (b)

 Prepare a vertical analysis of the balance sheet data for Nike for 2020. (Round percentages to 1 decimal place, e.g. 12.3%.)

Answer 1

Ans. A	Nike Inc.
	Condensed Balance Sheet
	For 2019 to 2020
	In millions
		2020	2019	Amount change	Percentage change
	Assets
	Current Assets	$9,102	$8,200	$902	11.0%
	Property, plant and equipment (net)	$1,890	$1,800	$90	5.0%
	Other assets	$1,653	$1,900	($247)	-13.0%
	Total assets	$12,645	$11,900	$745	6.3%
	Liabilities and Stockholder's Equity:
	Current Liabilities	$3,564	$3,600	($36)	-1.0%
	Long term liabilities	$1,164	$1,200	($36)	-3.0%
	Stockholder's equity	$7,917	$7,100	$817	11.5%
	Total liabilities and stockholder's equity	$12,645	$11,900	$745	6.3%
	Change in amount = Particular amount of current year 2020 - Particular amount of previous year 2019
	Change in percentage = Change in amount / particular amount of base (2019) or previous year * 100
Ans. B	Nike Inc.
	Condensed Balance Sheet
		in Millions	Percent
	Assets
	Current Assets	$9,102	72.0%
	Property, plant and equipment (net)	$1,890	14.9%
	Other assets	$1,653	13.1%
	Total assets	$12,645	100.0%
	Liabilities and Stockholder's Equity:
	Current Liabilities	$3,564	28.2%
	Long term liabilities	$1,164	9.2%
	Stockholder's equity	$7,917	62.6%
	Total liabilities and stockholder's equity	$12,645	100.0%
	Amount is percentage from assets side (2020) =   Particular amount from assets side (2020) / Total assets (2020) * 100
	Amount is percentage from liabilities side (2020) =   Particular amount from liability side (2020)/ Total liabilities and owner's equity (2020) * 100