Financial statement disclosures are information that is given by a company that makes it easier for the reader to understand the financial statements. Management of a company uses the financial statement disclosures to make sure that according to the Securities and Exchange Commission, all financial information is accurately reported. Nike is the number one athletic sportswear and equipment supplier in the United States. This paper will take a look at its financial statements and is disclosures. This paper will take a closer look at how the company is doing and what they wanted to ensure that its readers understood about the company’s financial status.
Nike’s Inventory Disclosure
One of a company’s current assets is its inventory. Inventory is said to be a current asset because it is assumed that the company will sell it in near future. Nike’s financial disclosures states that the inventory balances of $2,536 million on February 28, 2011 and $2,041 million on May 31, 2010. It also states that all inventories were finished goods. Some inventory can be the items that are used to complete one particular item. Some inventory could be including incomplete inventory. This financial disclosure wanted the investors to know that the inventory that is stated on the financial statements were all completed items. Inventory on February 28, 2011 was $ 2,536 million and on May 31, 2010 it was reported that the inventory was $ 2,041 million. At the end of the third quarter of fiscal 2011 is increased by 18% in comparison to 2010 at the end of the third quarter it increased by 11%. The disclosure also states the increase occurred because of their replenishment program for high turnover products and pre-builds to maximize the productivity of factory capacity. This is a good thing because it signifies that the company is selling their inventory and making a profit. Nike’s cash flow activity
The disclosure on the financial...