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Discussion
31/03/2022
Project 3: horizontal and vertical analysis
Hypothetical balance sheets of Nike, Inc. are presented here.
NIKE, INC.
Condensed Balance Sheet
May 31
($ in millions)20222021AssetsCurrent Assets$9,580$8,770Property, plant, and equipment (net)1,8101,800Other assets1,5401,670Total assets$12,930$12,240Liabilities and Stockholders’ EquityCurrent Liabilities$3,150$3,320Long-term liabilities1,3201,370Stockholders’ equity8,4607,550Total liabilities and stockholders’ equity$12,930$12,240
(a) Prepare a horizontal analysis of the balance sheet data for Nike, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.5%.)
NIKE, INC.
Condensed Balance Sheet
May 31
($ in millions)20222021Increase
(Decrease)Percentage
Change
from 2021Assets Current Assets$9,580$8,770$enter a dollar amount enter percentages rounded to 1 decimal place rounded to 1 decimal place % Property, plant, and equipment (net)1,8101,800enter a dollar amount enter percentages rounded to 1 decimal place rounded to 1 decimal place % Other assets1,5401,670enter a dollar amount enter percentages rounded to 1 decimal place rounded to 1 decimal place % Total assets$12,930$12,240$enter a dollar amount enter percentages rounded to 1 decimal place rounded to 1 decimal place %Liabilities and Stockholders’ Equity Current Liabilities$3,150$3,320$enter a dollar amount enter percentages rounded to 1 decimal place rounded to 1 decimal place % Long-term liabilities1,3201,370enter a dollar amount enter percentages rounded to 1 decimal place rounded to 1 decimal place % Stockholders’ equity8,4607,550enter a dollar amount enter percentages rounded to 1 decimal place rounded to 1 decimal place % Total liabilities and stockholders’ equity$12,930$12,240$enter a dollar amount enter percentages rounded to 1 decimal place rounded to 1 decimal place %
(b) Prepare a vertical analysis of the balance sheet data for Nike for 2022.
NIKE, INC.
Condensed Balance Sheet
choose the accounting period
$ (in millions)
Percent
Assets
Current Assets
$9,580
enter percentages rounded to 1 decimal place
%
Property, plant, and equipment (net)
1,810
enter percentages rounded to 1 decimal place
%
Other assets
1,540
enter percentages rounded to 1 decimal place
%
Total assets
$12,930
enter percentages rounded to 1 decimal place
%
Liabilities and Stockholders’ Equity
Current Liabilities
$3,150
enter percentages rounded to 1 decimal place
%
Long-term Liabilities
1,320
enter percentages rounded to 1 decimal place
%
Stockholders’ equity
8,460
enter percentages rounded to 1 decimal place
%
Total liabilities and stockholders’ equity
$12,930
enter percentages rounded to 1 decimal place
%
