The following data are taken from recent financial statement of Nike, Inc. Sales

Question

The following data are taken from recent financial statement of Nike, Inc.
Sales (revenues) year 2- The following data are taken from recent financial statement of Nike, Inc.
Sales (revenues) year 2-
Sales (revenues) year 2- Vertical analysis The following data are taken from recent financial statement of Nike, Inc. (in millions): Year 2 Year 1 $30,601 3,273 $27,799 Net income 2,693 a. Determine the amount of change (in millions) and percent of change in net income from Year i to Year 2. Round to one decimal place. 1.2 % b. Determine the percentage relationship between net income and sales for Year 2 and Y to one Year 1:5.64 x % Year 2: 0.11 )( % net

Explanation / Answer

a) Determine amount change and percentage change in net income :

Amount = (3273-2693) = 580

Percentage = 580*100/2693 = 21.5%

b) Relationship between net income and sales :

Year 2 : 3273*100/30601 = 10.7%

Year 1 : 2693*100/27799 = 9.7%

c) Nike has increased net income between two years. This represnts impressive earnings growth between the two years.

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