Casework - Casework should be posted according to the course schedule in Moodle
ID: 2748860 • Letter: C
Question
Casework - Casework should be posted according to the course schedule in Moodle using the assignment submit link. Use the provided annual report for Nike, Inc. This report and its Consolidated Statements of Income and Consolidated Balance Sheets will serve as your primary resource for completing the casework. Perform a horizontal analysis and a vertical analysis (refer to Chapter 17 TEXT BOOK: Accounting, 26th Edition; Warren, Reeve, and Duchac; South-Western/Cengage Learning, 2016) for the income statement and balance sheet using only the years 2014 and 2013 in Nike, Inc.’s format (do not summarize or combine line items).
http://investors.nike.com/investors/news-events-and-reports/default.aspx?toggle=topBanner
http://trineonline.trine.edu/pluginfile.php/1053866/mod_resource/content/2/nike-2014-form-10K.pdf
Explanation / Answer
Since Nike's financial year ending is May 31, I am considering filings done on May 31, 2015 and May 31, 2014
Income Statement
Horizontal Analysis
Vertical Analysis
Balance Sheet
Horizontal Analysis
Vertical Analysis
(In millions, except per share data) 2015 2014 2015 2014 Income from continuing operations: Revenues $ 30,601 $ 27,799 100.00% 90.84% Cost of sales 16,534 15,353 100.00% 92.86% Gross profit 14,067 12,446 100.00% 88.48% Demand creation expense 3,213 3,031 100.00% 94.34% Operating overhead expense 6,679 5,735 100.00% 85.87% Total selling and administrative expense 9,892 8,766 100.00% 88.62% Interest expense (income), net (Notes 6, 7 and 8) 28 33 100.00% 117.86% Other (income) expense, net (Note 17) (58) 103 100.00% -177.59% Income before income taxes 4,205 3,544 100.00% 84.28% Income tax expense (Note 9) 932 851 100.00% 91.31% NET INCOME FROM CONTINUING OPERATIONS 3,273 2,693 100.00% 82.28% NET INCOME FROM DISCONTINUED OPERATIONS - - NET INCOME $ 3,273 $ 2,693 100.00% 82.28%