Acc561 Introduction to Management Accounting: E13-5 The comparative balance sheets of Nike

Acc561 Introduction to Management Accounting
E13-5
The comparative balance sheets of Nike, Inc. are presented here.
NIKE INC.
Comparative Balance Sheets
May 31
($ in millions)
Assets 2007 2006
Current assets 8,076 7,346
Property, plant, and equipment (net) 1,678 1,658
Other assets 934 866
Total assets ,688 ,870 $10,688 $9,870

Liabilities and Stockholders' Equity
Current liabilities 2,584 2,612
Long-term liabilities 1,079 973
Stockholders' equity 7,025 6,285
Total liabilities and stockholders' equity $10,688 $9,870

Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Nike using 2006 as a base. (If amount decreases, use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Round all percentages to 1 decimal place, e.g. 12.5.)
(b) Prepare a vertical analysis of the balance sheet data for Nike for 2007. (If amount decreases, use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Round all percentages to 1 decimal place, e.g. 12.5.)
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