The below charts were pulled from Nike’s 10K. The pink column represents data from May 31, 2012, and the purple column from May 31, 2011.
What current assets are included in the balance sheet?
Cash and equivalents
Short-term investments (Note 6)
Accounts receivable, net (Note 1)
Inventories (Notes 1 and 2)
Deferred income taxes (Note 9)
Prepaid expenses and other current assets (Notes 6 and 16)
Total current assets
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
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)
Goodwill (Note 4)
Deferred income taxes and other assets (Notes 6, 9 and 16)
e. What current liabilities are included on the balance sheet? Current liabilities:
Current portion of...
Please join StudyMode to read the full document