The following items were taken from the balance sheet of Nike, Inc.
|
1
|
Cash
|
$2,291.10
|
|
2
|
Accounts receivable
|
2,883.90
|
|
3
|
Common stock
|
2,874.20
|
|
4
|
Notes payable
|
342.9
|
|
5
|
Other assets
|
3,759.90
|
|
6
|
Other liabilities
|
1,311.50
|
|
7
|
Inventories
|
$2,357.00
|
|
8
|
Income taxes payable
|
86.3
|
|
9
|
Property, plant, and equipment
|
1,957.70
|
|
10
|
Retained earnings
|
5,818.90
|
|
11
|
Accounts payable
|
2,815.80
|
Instructions
Perform each of the following.
(a) Classify each of these items as an asset, liability, or stockholders" equity and determine the total dollar amount for each classification. (All dollars are in millions.)
(b) Determine Nike"s accounting equation by calculating the value of total assets, total liabilities, and total stockholders" equity.
(c) To what extent does Nike rely on debt versus equity financing?