a.What current assets are included in the balance sheet?
Cash and equivalents $2,317 $1,955
Short-term investments (Note 6) 1,440 2,583
Accounts receivable, net (Note 1) 3,280 3,138
Inventories (Notes 1 and 2) 3,350 2,715
Deferred income taxes (Note 9) 274 312
Prepaid expenses and other current assets (Notes 6 and 16) 870 594 Total current assets 11,531 11,297
b.What method does the company use to value inventory?
The Notes indicate that NIKE uses “last in first out,” or LIFO, for domestic inventories and “first in first out,” or FIFO, for international inventories
c.What depreciation method does the company use?
The Notes indicate that NIKE uses the straight line method for buildings and leasehold improvements and the declining balance method for machinery and equipment. As with the inventory cost-flow assumption, standard-setting bodies give firms freedom to select any depreciation method from the set deemed acceptable. These bodies do not provide criteria as to which method is more “appropriate” for a particular firm. The methods that NIKE uses for financial reporting closely coincide with the methods it uses for tax reporting. Thus, NIKE saves record keeping costs by using the same depreciation methods for financial and tax reporting.
d. What assets other than current assets and property, plant, and equipment are included on the balance sheet? Identifiable intangible assets, net (Note 4) 535 487 Goodwill (Note 4) 201 205
Deferred income taxes and other assets (Notes 6, 9 and 16) 919 894
e. What current liabilities are included on the balance sheet? Current liabilities:
Current portion of...