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acc homework due friday 5 pm..........................................................................................................................................................................................................................................................................................
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HOMEWORK #6
Due October 26, 5 pm
10 points
To complete the required items below, refer to the following:
1. The financial statements of Nike for the year ended May 31, 2017 Link:
https://www.sec.gov/Archives/edgar/data/320187/000032018717000090/nke5312017x10k.htm#s6108B95C44B70D82F2F7B1AD8193668A
2. The financial statements of Under Armor for the year ended December 31, 2017
provided on D2L. Link:
https://www.sec.gov/Archives/edgar/data/1336917/000133691718000009/ua20171231x10k.htm#s37D6E3A93272547FA76B94BA8DE3012B
3. An Industry Ratio Report from the textbook provided on D2L.
Provide your answers in one Word document (you can download this document and fill
in accordingly.
Required:
1. How much inventory does Nike hold at the end of the most recent period (May
31, 2017)?
2. Estimate the amount of merchandise that Nike purchased during the year ended
May 31, 2017 (Hint: Use the cost of goods sold equation).
3. What method does Nike use to determine the cost of its inventory?
4. Compute the inventory turnover ratio (cost of goods sold from the income
statement divided by average inventory) for both Nike and Under Armor for the
year ending May 31, 2017 and December 31, 2017, respectively. Show your
work and report the ratios in the below table. Discuss in a few sentences, what
you can infer from the difference.
Nike
Under Armor
5. Compare the inventory turnover ratio for both companies to the industry average.
Report the ratios in the below table and discuss in a few sentences whether these
two companies are doing better or worse than the industry average in managing
their inventory.
Industry
Average
Nike
Under Armor
INDUSTRY RATIO REPORT
Retail Family Clothing Stores
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Unclear discussion on best practices for management.
Provided best practices for managers.
Provided best practices for managers using clear examples.
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Not Submitted
No noticeable attempts to summarize or conclude the presentation.
Conclusion summarized the importance of diversity planning for managers.
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