E1-15 Classify items as assets, liabilities, and stockholders' equity, and prepare accounting equation
Suppose the following items were taken from the balance sheet of Nike, Inc. (All items are in millions.)
1. Cash $2,291.1 7. Inventory $2,357.0
2. Accounts receivable 2,883.9 8. Income taxes payable 86.3
3. Common stock 2,874.2 9. Equipment 1,957.7
4. Notes payable 342.9 10. Retained earnings 5,818.9
5. Buildings 3,759.9 11. Accounts payable 2,815.8
6. Mortgage payable 1,311.5
Instructions
(a) Classify each of these items as an asset, liability, or stockholders' equity and determine the total dollar amount for each classification.
(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?
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