How Did Nike's Board Declare An Increase In Fiscal 2008?

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To: R. Joseph Childs, Professor
From: Meagan Dawes
Subject: Week II
Date: January 24, 2017

1. Present your summaries of the Key Chapter terms here. If none for the week, so state in the submission area.

2. Present your solutions to the textbook problems here. Keep the problems in the order listed in the syllabus. If none for the week, so state in the submission area.

16-A1 Balance Sheet and Income Statement
Weikart Company
Balance Sheet
December 31, 20X0
Assets

Amount ($)
Current Assets:

Cash and equivalents

$55,000

Accounts receivable, net

48,000

Inventories

36,000

Prepaid expenses

15,000

Interest income

15,000

Total Current Assets:

$229,000
Non-Current Assets:

Property, Plant and Equipment

At cost
$580,000
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Nike had an increase in cash of $277.2 million in fiscal 2008. What three major components comprise this change in cash?
The three major components that comprise this change in cash are the following activities:
Operating activities, investing activities, and financing activities

5. Did Nike’s board declare any cash dividends in fiscal 2008? If so, how much? On what financial statement did you find this?
In fiscal 2008, Nike’s board did declare a cash dividend of $0.0875 per common share. This was found in the consolidated statement of income and also the consolidated statement of cash
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Current ratio = Current assets/current liabilities = $1,085 million / $450 million = 2.41

2. Total Debt to equity = Total liabilities / Stockholder’s equity
Total liabilities for 2009 = $1003 million
Stockholder’s equity for 2009 = $1,845 million
Ratio of total debt to stockholders’ equity for 2009 = $1,003/$1,845 = 54.36% 3. Gross profit rate = Gross profit / Sales
Gross profit for 2009 = $2,362 million
Gross margin percentage for 2009 = $2,362 / $3,540 = 66.72%

4. Return on sales = Net income / Sales
Net income for 2009 = $272 million
Sales for 2009 = $3,540 million
Return on sales for 2009 = $272 / $3540 = 7.68%

5. Return on stockholders’ equity = Net income / Average stockholders’ equity
Net income for 2009 = $272 million
Average stockholders’ equity for 2009 = $1,732 million
Return on stockholders’ equity for 2009 = $272 / $1,732 = 15.70%

6. Earnings per share = Net income / Number of equity shares for 2009
Outstanding shares during the year = 86.816 million shares
Net income for 2009 = $272 million
EPS = $272 / 86.816 = 3.13 per common

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