Analyzing Nike's financial statements
To calculate what percentage one amount is of another amount, you divide the smaller
amount by the total that contains the smaller amount. Using Nike as an example, Cash for
2010 = $3,079,000,000. Total assets for 2010 = $14,419,000,000. To calculate what percentage
cash is of total assets, use the following formula: Cash, $3,079,000,000 รท total assets,
$14,419,000,000. The answer is 0.21354, or 21.35%.
INSTRUC TIONS
1. Use the information on page B-6 in Appendix B. Find the amount of accounts receivables and
total assets for Nike for 2010 and 2011. Calculate what percentage accounts receivable are of
total assets for 2011 and 2010.
2. Did the percentage increase or decrease over this period of time?
3. If this percentage would increase rapidly, what could be happening?
Journalizing Transactions
Chapter 3
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