1. Distinguish managerial accounting from financial accounting, and describe how the information provided by the two systems is used differently.

2. Excerpts taken from the SEC Form 10-K of NIKE, Inc. are reproduced in Appendix C

REQUIRED:

Review the 10-K of NIKE, and answer the following questions.

a. Briefly describe the operations of NIKE, and indicate whether it is a manufacturing, retail, or service company.

b. Which accounting firm audits NIKE? Briefly explain the contents of the audit report.

c. What dollar amounts for net income were reported in 2009, 2008, and 2007?

d. Compute NIKE's liabilities as a percent of total assets in 2009 and 2008. Did the percentage increase or decrease?

e. How much cash was provided by operating activities during 2009, 2008, and 2007?

f. Comment on NIKE's financial performance and condition.