I need help with question 2. I did question 1 wich is the microsoft excel. I just need to do question 2 which ask what would be the conclusion drawn to the analyses. I attached the two problems and the microsoft excel. Nike, Inc., ProblemFinancial statement analysisThe financial statements for Nike, Inc., are presented in Appendix D at the end of the text.Use the following additional information (in thousands):$ 3,117Accounts receivable at May 31, 2014Inventories at May 31, 20144,142Total assets at May 31, 201418,594Stockholders' equity at May 31, 201412,000Instructions1. Determine the following measures for the fiscal years ended May 31, 2016, and May31, 2015. Round ratios and percentages to one decimal place.a. Working capitalb. Current ratio.c. Quick ratiod. Accounts receivable turnovere. Number of days' sales in receivablesf. Inventory turnoverg. Number of days' sales in inventoryh. Ratio of liabilities to stockholders' equityi. Asset turnoverj. Return on total assets.k. Return on common stockholders' equity1. Price-earnings ratio, assuming that the market price was $54.90 per share on May 29,2016, and $52.81 per share on May 30, 2015m. Percentage relationship of net income to sales2.What conclusions can be drawn from these analyses? a. Working capital=Current assets-Current liabilities.20162015(a)15025 15587Current assetsCurrent liabilities(b)53586332Working capital(a)-(b)96679255b.Current ratio=Current assets/Current liabilities20162015Current assets(a)1502515587Current liabilities(b)53586332Current ratio(a)/(b)2.82.46C.Quick ratio=(Current assets-Inventories)/Current liabilities20162015Current assets(a)15025 15587Inventories(b)48384337c=(a)-(b)1018711250Current liabilities(d)53586332Quick ratioc/(d)1.91.78d.Accounts receivable turnover ratio=Sales/ Average accounts receivableAverage accounts receivable=(Beg. Acc receivable+End. Acc. Receivable)/220162015Revenues32376 30601Beg.accounts receivable33583117End.accounts receivable32413358Accounts receivable3299.53237.5Receivable turnover ratio9.819.45e. No.of days sales in receivables=365/Accounts receivable turnover ratio20162015No.of days365365Receivable turnover ratio9.819.45No.of days sales in receivables37.2138.62f. Inventory turnover-cost of sales/Average inventoriesAverage inventories=(Beg.Inventory+End.inventory)/220162015Cost of sales1740516534Beg.Inventory43374112End.Inventory48384337Average inventory4587.54224.5Inventory turnover3.793.91g. No.of days sales in inventory-365/Inventory turnover ratio20162015No.of days365365Inventory turnover3.793.91No.of days sales in inventory96.3193.35h. Ratio of liabilities to stockholder's equity-Total liabilities/Total stockholder's equity2016 2015Total current liabilities53586332Long-term debt20101079Deferred income taxes and other17701479Total liabilities91388890Total stockholder's equity1225812707Ratio of liabilities to stockholder's equity0.750.7Asset turnover-Sales/Average assetsAverage assets=(Beg.assets+End.assets)/220162015Revenues3237630601Beg Assets21597 18594End.Assets21396 21597Average assets21496.5 20095.5Asset turnover1.511.52Return on total assets=Net income/j. Average total assets20162015Net income3760 3276Average assets21496.5 20095.5Return on total assets17.49% 16.30%k.Return on common stockholder's equity-Net income /Average stockholder's equityAverage stockholder's equity=(Beg.Stockholder's equity+End.Stockholder's equity)/220162015Net income37603276Beg. Stockholder's equity1270712000End. Stockholder's equity12258 12707Average stockholder's equity12482.5 12353.5Return on equity30.12% 26.52%1. Price earnings ratio=Market price/Basic Earnings per share2016201554.952.81Market priceEarnings per share (b)2.211.9Price earnings ratio (a)/(b)24.8427.79m % relationship of net income to net sales-Net income/Sales20162015Net income3760327632376 30601Revenues% relationship11.61% 10.71%i.

Ratios are those financial instrument which states the line items in ratio form and it is easily…

Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at the end of the text. Use the following additional information (in thousands): Accounts receivable at May 31, 2014 $ 3,117 Inventories at May 31, 2014 4,142 Total assets at May 31, 2014 18,594 Stockholders' equity at May 31, 2014 12,000

Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at the end of the text. Use the following additional information (in thousands): Accounts receivable at May 31, 2014 $ 3,117 Inventories at May 31, 2014 4,142 Total assets at May 31, 2014 18,594 Stockholders' equity at May 31, 2014 12,000

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1FSA: Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at...

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