EXHIBIT 1- COMPARATIVE INCOME STATEMENT NIKE CORPORATION YEAR ENDED MAY 31 IN MI

Question

EXHIBIT 1- COMPARATIVE INCOME STATEMENT NIKE CORPORATION YEAR ENDED MAY 31 IN MILLIONS, EXCEPT PER SHARE- DATA) Revenues Cost of Sales Gross Margin Selling and Administrative Interest Expense Other Income/Expense, Net Income before Income taxes and 2018 2017 2016 10,697.0 $9,893.0 9,488.8 6,316.6 6,004.7 5,784.9 4,383.4 3,883.3 3,703.9 3,137.6 2,820.4 2,689.7 58.7 34.1 42.9 79.9 47.6 cumulative effect accounting change 1,123.0 1,017.3 Income Taxes Income before cumulative effect of 921.4 331.7 382.9 740.1 266.1 349.0 accounting change 668.3 589.7 change, net of income taxes of ($-, $3.0 and $-) Net Income 5.00 Basic earnings per common share before accounting change $ 2.80 $2.50 2.18 1.01 0.02 $1.79 2.48 2.18 Cumulative effect of accounting change Dilluted earnings per common share- be fore accounting change Cumulative effect of accounting change $ 2.77$ 2.46 $2.16 1.00 0.02 1.77$ 2.44 2.16

Explanation / Answer

2018 2017

A) Current Ratio : Total Current Asset / Total Current Liability = 4679.9/2015.2 4154.7/1833.2

= 2.32 = 2.26

B) Quick ratio/ Acid test ratio : Total asset - inventory-prepaid exp etc - deferred tax asset/total liability

=2734.7/2015.2 = 1.35 2379.6/1833.2= 1.09

C) Gross profit ratio - Gross profit / net sales : 4383.9/10697 =40.97% 3883.3/9893 =39.25

D) Net Profit Margin : net profit margin after a/cing charges/sales

474/10697=4.43 663.3/9893=6.704

E) ROI = Net income margin after a/cing charges/ avg total assets

Average asset :- (6713.9+6440)/2= 6576.95 = 474/6576.95= 0.07 663.3/6576.95=.1008

F) Return on equity = Net income/ total equity =474/3914.85=.121 663.3/3914.85=.169

G) debt to asset :- debt/asset = 551.6/3990.7 = 0.138 624.9/3839 - .163

h) Time interest earned = ebit/interest = (4383.4-3137.6-79.9) =1165.9 ,(3883.3-2820.4-3)=1059.9

= 1165.9/42.9= .037 = 1059.9/47.6=.045

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