Chapter 17, Problem 1FSA

Financial Statement Analysis

The financial statements for Nike, Inc., are presented in Appendix C at the end of the text. The following additional information (in thousands) is available:

Instructions

1. 1. Determine the following measures for the fiscal years ended May 31, 2013 (fiscal 2012), and May 31, 2012 (fiscal 2011), rounding to one decimal place.
   1. a. Working capital
   2. b. Current ratio
   3. c. Quick ratio
   4. d. Accounts receivable turnover
   5. e. Number of days’ sales in receivables
   6. f. Inventory turnover
   7. g. Number of days’ sales in inventory
   8. h. Ratio of liabilities to stockholders’ equity
   9. i. Ratio of sales to assets
   10. 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
   11. k. Rate earned on common stockholders’ equity
   12. 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
   13. m. Percentage relationship of net income to sales
2. 2. What conclusions can be drawn from these analyses?