Nike Accounting Essay

3674 Words Nov 20th, 2010 15 Pages
RESEARCH PROJECT – ACCOUNTING II

1. Nike, Inc.

2. Nike world headquarters location

One Bowerman Drive

Beaverton, Oregon 97005-6453

3. In 1950, before there was the Swoosh, before there was Nike, there were two visionary men

who pioneered a revolution in athletic footwear that redefined the industry.

Bill Bowerman who was constantly seeking ways to give his athletes a competitive advantage.

and Phil Knight was a talented middle-distance runner from Portland, who enrolled at Oregon in

the fall of 1955 and competed for Bowerman’s track program. But Bowerman and Knight each

had full-time jobs - Bowerman at Oregon and Knight at a Portland accounting firm - so they

needed someone to manage the
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5. Financial Information

a) Income Statement

Third quarter gross margins were 43.9 percent compared to 45.1 percent for the same period last year. Gross margins were lower than the prior year due to higher product input costs and product markdowns taken to reduce excess inventories

Selling and administrative expenses were 30.4 percent of third quarter revenue compared to 30.9 percent for the same period last year. Selling and administrative expenses for the period were lower than last year reflecting management actions to reduce expenses.

The effective tax rate was for the third quarter was -3.6 percent compared to 30.6 percent for the same period last year. The tax rate was lower than the prior year due to the impact of the impairment of Umbro’s goodwill, intangibles and other assets, a lower on going tax rate on operations outside of the United States, and resolution of audit items. Excluding the impact of the impairment charge, the third quarter tax rate would have been 23.9 percent.

b) Balance Sheet

At quarter end, global inventories stood at 2.5 billion, an increase of 3 percent from February 29, 2008. Cash and short-term investments were $2.6 billion at the end of the quarter, compared to $2.9 billion at the end of the third quarter last year.

6. Analyze Cash & Cash Equivalent

a) Total Cash $ 2, 242.4

b) Total in Current

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