Question

Financial Statement Analysis The financial statements for Nike, Inc., are available at the Appendix C link above. The following additional information (in millions) is available: Accounts receivable at May 31, 2011: $3,138 Inventories at May 31, 2011: 2,715 Total assets at May 31, 2011: 14,998 Stockholders' equity at May 31, 2011: 9,843 Determine the following measures for the fiscal years ended May 31, 2013 (fiscal 2012), and May 31, 2012 (fiscal 2011). Do not round interim calculations. Round the working capital amount in part (a) to the nearest dollar. Round all other final answers to one decimal place. When required, use the rounded final answers in subsequent computations. Fiscal Year 2012 Fiscal Year 2011 a. Working capital (in millions) $ $ b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days' sales in receivables days days f. Inventory turnover g. Number of days' sales in inventory days days h. Ratio of liabilities to stockholders' equity i. Ratio of sales to assets j. Rate earned on total assets, assuming interest expense is $23 million for the year ending May 31, 2013, and $31 million for the year ending May 31, 2012 % % k. Rate earned on stockholders' equity % % l. Price-earnings ratio, assuming that the market price was $61.66 per share on May 31, 2013, and $53.10 per share on May 31, 2012 m. Percentage relationship of net income to sales % %

Answer 1

solution is written below clearly of the year 2012 and next 2011

			fiscal year 2012
a.	Working capital (in millions)		9700	$
b.	Current ratio		3.4707081		3.05126224	Current Assets/Current Liabilities
c.	Quick ratio		2.31329598		1.77460072	Current Assets-Inventory-Prepaid Expenses/Current Liabilities
d.	Accounts receivable turnover		8.10145623		7.44210526	Net Credit Sales/Average Accounts Receivables
e.	Number of days' sales in receivables		45.0617284		49.0591398	365 days/Accounts Receivable Turnover
f.	Inventory turnover		4.2905649		4.44096345	Cost of Goods Sold/Average Inventory
g.	Number of days' sales in inventory		85.0703831		82.1893727	365 days/Inventory Turnover
h.	Ratio of liabilities to stockholders' equity		0.57619218		0.48974087	Liabilities/Stockholders Equity
i.	Ratio of sales to assets		1.43954732		1.5086324	Net Sales/Total Assets
j.	Rate earned on total assets, assuming interest expense is $23 million for the year ending May 31, 2013, and $31 million for the year ending May 31, 2012		18.3746588		19.7348852	Income-Assumed Interest/Total Assets*100
k.	Rate earned on common stockholders' equity		28.9619935		29.3998651	Income-Assumed Interest/Shareholders Funds*100
l.	Price-earnings ratio, assuming that the market price was $61.66 per share on May 31, 2013, and $53.10 per share on May 31, 2012		22.9219331		21.9421488	Market Price/Earning Per Ratio
m.	Percentage relationship of net income to sales		9.81709003		9.52809567
please do raise your doubts .thanking you