| 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? |
| NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . |
| (a) | Assets |
| | Cash | Value |
| | Accounts receivable | Value |
| | Inventory | Value |
| | Equipment | Value |
| | Buildings | Value |
| | Total Assets | ? |
| | Liabilities |
| | Notes payable | Value |
| | Accounts payable | Value |
| | Mortgage payable | Value |
| | Income taxes payable | Value |
| | Total liabilities | ? |
| | Stockholders' equity |
| | Common stock | Value |
| | Retained earnings | Value |
| | Total stockholders' equity | ? |
| (b) | Assets | = | Liabilities | + | Stockholders' Equity |
| | Value | | Value | | Value |
| (c) | Total liabilities | | Value |
| | Total assets | | Value |
| | Assets financed by debt | | ? |
| | Total equity | | Value |
| | Total assets | | Value |
| | Assets financed by equity | | ? |
oetsdyter2007
spreadsheet.xlsx
