The SEC Form 10-K of NIKE is reproduced in Appendix C.
REQUIRED:
Review the SEC 10-K Form for NIKE, and answer the following questions.
a. Compute the change in NIKE's current ratio and working capital from 2008 to 2009. Which accounts are the most important in explaining that change?
b. What is included in NIKE's balance sheet cash account?
c. How large are NIKE's receivables relative to current assets and total assets? How important is receivables management to NIKE's operations? How large is the reserve (allowance) for bad debts? Explain.
d. What percent of revenue and accounts receivable results from international sales? What strategies does NIKE employ to mitigate risks related to foreign currency?
e. Why is the increase in accounts receivable listed in the operating section of the statement of cash flows?