ACCTG 331 Nike Financial Statement Analysis

Description

My company is Nike, Outline for your paper—less than 3 pages text.
 Company overview (10%): Name, description of business, operating locations, revenues, net income, EPS, stock price, number of employees and other relevant information.
 Balance Sheet (40%): Discuss significant accounting policies with an emphasis on compliance with GAAP accounting (ignore insignificant items).
i. Revenue/Accounts Receivable: What are the revenue recognition and Bad debt policies? Explain the reasons for unearned/deferred revenue balances.
Calculate the Collections and AR:Sales ratios.
ii. Inventory: Describe the inventory accounting methods. Calculate inventory turnover ratios. Explain inventory write downs/write-offs, if any.
iii. Tangible non-current assets: Describe the capitalization and depreciation policies. What is the PPE: Sales ratio. Is this a capital intensive business?iv.Intangible non-current assets: describe the capitalization and amortization policies. What is the ratio of intangibles to total assets. Is management philosophy to organically grow the business or to acquire other companies/intellectual property?v.Other: Highlight unusual items disclosed in the footnotes such as changes in accounting, write-offs, gains or losses, contingencies. Income statement (20%): Evaluate the income statement as well as non-financial information to address the following items.i. Income statement unusual items: Explain the nature of major restructuring, impairments, discontinued operations. What is the impact from these items in future periods?
ii. Ratios: Calculate gross profit/margin and net income:sales ratios
 Analysis of statement of cash flows (20%)
i. Compare net income amount to the cash flow from operations amount—why are they different?
ii. How does the company invest its cash?
 Investment recommendations (10%)
i. Assume you are an investment analyst and are tasked to make a buy/sell recommendation for your company given today’s stock price. What is your recommendation and why?

Explanation & Answer:
3 pages

Tags:
Income Statement

nike

Financial Statement

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