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NIKE, Inc . Andres Zorrilla ACG2021 SECTION 080

NIKE, Inc . Andres Zorrilla ACG2021 SECTION 080. Annual Report Project Directions : DURING THE CLASS THAT COVERS CHAPTER 15, GET PROFESSOR APPROVAL FOR THE COMPANY YOU WANT TO ANALYZE.

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NIKE, Inc . Andres Zorrilla ACG2021 SECTION 080

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  1. NIKE, Inc.Andres ZorrillaACG2021 SECTION 080 Annual Report Project Directions: DURING THE CLASS THAT COVERS CHAPTER 15, GET PROFESSOR APPROVAL FOR THE COMPANY YOU WANT TO ANALYZE. PREPARE A POWERPOINT PRESENTATION: Modify and enhance this powerpoint template—replace any italicized words in this template with your own. Add images, tables, backgrounds, etc. !!! THIS TEMPLATE IS BASED ON THE ANNUAL REPORT PROJECT  PARTS A-E (OPTION C-exclude cash flow adequacy, pages 56-58) IN  TEXT.  SAVE YOUR PROJECT AS A WEB PAGE--NAME YOUR FILE YOUR THREE INITIALS AND YOUR COMPANY NAME. BE SURE YOUR WEBPAGE INCLUDES A LINK TO  THE CORPORATIONS' F/S! SEND YOUR WEB-READY PRESENTATION AS AN E-MAIL ATTACHMENT TO susan.crosson@sfcc.edu BY THE DUE DATE LISTED IN COURSE CALENDAR. ALL SUBMISSIONS WILL BE POSTED ON OUR COURSE WEBSITE. THE ANNUAL REPORT PROJECT IS WORTH 18 POINTS. 

  2. Executive Summary After the completion of my analysis I came the conclusion of Nike Inc.’s financial status. The company is flourishing. It has excellent financial status and investment are being made daily to help expand profit. This company has recently bought Converse a well known shoe and clothing that will surely maximize income. In 2003 Nike increased revenue by 10.7 billion dollars, the highest in company history. This is an evolving company that is branching out into different business ventures, which is why it is so successful. http://www.edgar-online.com/bin/edgardoc/finSys_main.asp?dcn=0001193125-03-031022&nad=

  3. Part A. Introduction • The name of Nike’s chief executive officer is Philip H. Knight • Location of home office is Beaverton, Oregon • Ending date of latest fiscal year. May 30,2003 • Description of the principal products or services Nike provides are the following: • Nike’s principal activity involves the development of high quality footwear, apparel and accessory products. Nike is the largest seller of athletic footwear and apparel in the world. Nike Inc.’s products range from active sports wear to casual wear. • Main geographic area of activity: • Nike is international. It’s products are marketed in nearly 200 countries outside of the United States. The company operates through 24 distribution centers in Europe, Asia, Australia, Latin America, Africa and Canada. Nike has 175 retail outlets outside the U.S. and it is estimated that more than 30,000 of it’s retail accounts are foreign.

  4. Part A. Audit Report • Name of the company’s independent auditors. Pricewaterhouse C oo LLP • In your own words, what did the auditors say about the company? • The auditors stated that in their opinion the financial position of Nike Inc. and subsidiaries on May 31,2003 presented “fairly.” After the examination of cashflows and the results from operations the company is in good standing. After all the auditing and analysis Pricewaterhouse feels they have more than a reasonable base for this opinion.

  5. Part A. Stock Market Information • Most recent price of the company’s stock is $55.99 • Twelve month trading range of the company’s stock: 2003 • Year High $57.85 • Year Low $38,53 • Dividend per share $.54 • Date of the above information May 31, 2003 • Your opinion about the company stock as an investment? Buy! Nike is expanding and is bringing in better numbers every year. In addition a large investment was made that will be mentioned later in the report that will maximize returns.

  6. Part B. Industry Situation and Company Plans This company is in very good standing as stated by the auditors. It is a nation wide company with over 200 stores outside the United States.It is driven by rival competition and its need to expand. Nike just recently bought Converse Inc. as an investment for the future. In this coming year the company will focus on promoting their new investment with Converse as well as expanding Hurley (a newer branch of the company that sell extreme sports equipment).

  7. Part C. Income Statement Is the format most like a single-step or multistep format? Multistep 2003 2002 * (chart in millions) - Gross Profit increased due to increase in net sales in 2003 - Net Inc. Operations decreased. Probable causes were the raising of taxes in 2003. - Net Income increased because gross margin was higher and operating expenses were relatively lower in 2003.

  8. Part C. Balance Sheet (chart in millions) -Comments Assets increased by 237.9 Liabilities increased by 182.0 Owner’s Equity increased 151.7 * The assets account changed the most in 2003.

  9. Part C. Statement of Cash Flows Are cash flows from operations more or less than net income for the past two years? More Is the company growing through investing activities, i.e., buying property, plant and equipment and other long lived assets? Through investments in new companies like Converse. What is the company’s primary source of financing, i.e., long-term loans, stock sales? Stock Sales Overall, has cash increased or decreased over the past two years? Net Income has slightly decrease in 2003 due to large investments.

  10. Part D. Accounting Policies Significant Accounting Policies: Basis of Consolidation Recognition of revenues Shipping &Handling costs Cash & Equivalents Invetory Valuation Prop., Plant & Equip. & Dep. Stock Based Compensation Earnings Per Share Topics of Note to Financial Statements: Summary of Significant Acc. Policies Common Stock Inventories Earnings per Share Prop, Plant & Equipment Benefit Plans Identifiable Assets & Liabilities Interest Income Accrued Liabilities Comprehensive Income Short term Borrowing and Credit lines Commitments & Contingencies Long term Debt Risk Management & Derivatives Inc. Taxes Operating Segments & Related info. Redeemable Preferred Stock Subsequent Event

  11. Part E. Financial AnalysisLiquidity Ratios Calculations for the past two years: • (in millions)

  12. Part E. Financial AnalysisProfitability Ratios For the past two years, calculate :

  13. Part E. Financial AnalysisSolvency Ratio For the past two years, calculate and comment on: • Debt to equity • Debt to equity over the last year is virtually the same.

  14. Part E. Financial AnalysisMarket Strength Ratios For the past two years calculate and comment on:

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