SMG FE 449- Final Exam Guide - Comprehensive Notes for the exam ( 52 pages long!)
233 views52 pages
4 Dec 2017
School
Department
Course
Professor
Document Summary
A financial option contract gives its owner the right (but not obligation) to purchase or sell an asset at a fixed price at some future date. A call option gives the owner the right to buy the asset; a put option gives the owner the right to sell the option. For every owner of a financial option, there is an option writer, the seller of an option contract, who is the person who takes the other side of the contract. Options are a part of a broader class of securities called derivatives because they derive their value solely from the price of another asset. When a holder of an option enforces the agreement and buys or sells a share of stock at the agree-upon price, he is exercising the option. The price at which the option holder buys or sells the share of stock when the option is exercised is called the strike price or exercise price.
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Related Documents
Related Questions
NIKE:
Need the following ratios to be calculated using the financial sheets copied at the bottom. Each ratio needs to be calculated using the information from 2016. Each ratio also needs to be broken down and illustrated by the step by step process. Finally, please include any and all observations for each ratio and analysis.
1) Common Size analysis
2) Common size vertical analysis & graph
3) Current Ratio
4) Quick Ratio
5) Cash Ratio
6) Inventory Turnover
7) Receivables Turnover
8) Total Asset Turnover
9) Fixed Asset Turnover
10) Gross profit margin
11) Operating Profit margin
12) Net profit margin
13) Return on total assets
14) return on equity
15) basic earning power
16) Deb/net worth ratio
17) debt ratio
18) DuPont System
19) Times-interest-earned
Balance Sheet:
| Consolidated Balance Sheets - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 |
| Current assets: | ||
| Cash and equivalents | $ 3,808 | $ 3,138 |
| Short-term investments | 2,371 | 2,319 |
| Accounts receivable, net | 3,677 | 3,241 |
| Inventories | 5,055 | 4,838 |
| Prepaid expenses and other current assets | 1,150 | 1,489 |
| Total current assets | 16,061 | 15,025 |
| Property, plant and equipment, net | 3,989 | 3,520 |
| Identifiable intangible assets, net | 283 | 281 |
| Goodwill | 139 | 131 |
| Deferred income taxes and other assets | 2,787 | 2,422 |
| TOTAL ASSETS | 23,259 | 21,379 |
| Current liabilities: | ||
| Current portion of long-term debt | 6 | 44 |
| Notes payable | 325 | 1 |
| Accounts payable | 2,048 | 2,191 |
| Accrued liabilities | 3,011 | 3,037 |
| Income taxes payable | 84 | 85 |
| Total current liabilities | 5,474 | 5,358 |
| Long-term debt | 3,471 | 1,993 |
| Deferred income taxes and other liabilities | 1,907 | 1,770 |
| Commitments and contingencies | ||
| Redeemable preferred stock | 0 | 0 |
| Shareholders’ equity: | ||
| Capital in excess of stated value | 8,638 | 7,786 |
| Accumulated other comprehensive (loss) income | (213) | 318 |
| Retained earnings | 3,979 | 4,151 |
| Total shareholders’ equity | 12,407 | 12,258 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 23,259 | 21,379 |
| Class A Convertible Common Stock | ||
| Shareholders’ equity: | ||
| Common stock at stated value | 0 | 0 |
| Class B Common Stock | ||
| Shareholders’ equity: | ||
| Common stock at stated value | $ 3 | $ 3 |
Income Statement:
| Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
| May 31, 2017 | May 31, 2016 | May 31, 2015 | |
| Income Statement [Abstract] | |||
| Revenues | $ 34,350 | $ 32,376 | $ 30,601 |
| Cost of sales | 19,038 | 17,405 | 16,534 |
| Gross profit | 15,312 | 14,971 | 14,067 |
| Demand creation expense | 3,341 | 3,278 | 3,213 |
| Operating overhead expense | 7,222 | 7,191 | 6,679 |
| Total selling and administrative expense | 10,563 | 10,469 | 9,892 |
| Interest expense (income), net | 59 | 19 | 28 |
| Other (income) expense, net | (196) | (140) | (58) |
| Income before income taxes | 4,886 | 4,623 | 4,205 |
| Income tax expense | 646 | 863 | 932 |
| NET INCOME | $ 4,240 | $ 3,760 | $ 3,273 |
| Earnings per common share: | |||
| Basic (in dollars per share) | $ 2.56 | $ 2.21 | $ 1.90 |
| Diluted (in dollars per share) | 2.51 | 2.16 | 1.85 |
| Dividends declared per common share (in dollars per share) | $ 0.70 | $ 0.62 | $ 0.54 |
Cash Flow Sheet
| Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
| May 31, 2017 | May 31, 2016 | May 31, 2015 | |
| Cash provided by operations: | |||
| Net income | $ 4,240 | $ 3,760 | $ 3,273 |
| Income charges (credits) not affecting cash: | |||
| Depreciation | 706 | 649 | 606 |
| Deferred income taxes | (273) | (80) | (113) |
| Stock-based compensation | 215 | 236 | 191 |
| Amortization and other | 10 | 13 | 43 |
| Net foreign currency adjustments | (117) | 98 | 424 |
| Changes in certain working capital components and other assets and liabilities: | |||
| (Increase) decrease in accounts receivable | (426) | 60 | (216) |
| (Increase) in inventories | (231) | (590) | (621) |
| (Increase) in prepaid expenses and other current assets | (120) | (161) | (144) |
| (Decrease) increase in accounts payable, accrued liabilities and income taxes payable | (364) | (889) | 1,237 |
| Cash provided by operations | 3,640 | 3,096 | 4,680 |
| Cash used by investing activities: | |||
| Purchases of short-term investments | (5,928) | (5,367) | (4,936) |
| Maturities of short-term investments | 3,623 | 2,924 | 3,655 |
| Sales of short-term investments | 2,423 | 2,386 | 2,216 |
| Investments in reverse repurchase agreements | 0 | 150 | (150) |
| Additions to property, plant and equipment | (1,105) | (1,143) | (963) |
| Disposals of property, plant and equipment | 13 | 10 | 3 |
| Other investing activities | (34) | 6 | 0 |
| Cash used by investing activities | (1,008) | (1,034) | (175) |
| Cash used by financing activities: | |||
| Net proceeds from long-term debt issuance | 1,482 | 981 | 0 |
| Long-term debt payments, including current portion | (44) | (106) | (7) |
| Increase (decrease) in notes payable | 327 | (67) | (63) |
| Payments on capital lease and other financing obligations | (17) | (7) | (19) |
| Proceeds from exercise of stock options and other stock issuances | 489 | 507 | 514 |
| Excess tax benefits from share-based payment arrangements | 177 | 281 | 218 |
| Repurchase of common stock | (3,223) | (3,238) | (2,534) |
| Dividends — common and preferred | (1,133) | (1,022) | (899) |
| Cash used by financing activities | (1,942) | (2,671) | (2,790) |
| Effect of exchange rate changes on cash and equivalents | (20) | (105) | (83) |
| Net increase (decrease) in cash and equivalents | 670 | (714) | 1,632 |
| Cash and equivalents, beginning of year | 3,138 | 3,852 | 2,220 |
| CASH AND EQUIVALENTS, END OF YEAR | 3,808 | 3,138 | 3,852 |
| Cash paid during the year for: | |||
| Interest, net of capitalized interest | 98 | 70 | 53 |
| Income taxes | 703 | 748 | 1,262 |
| Non-cash additions to property, plant and equipment | 266 | 252 | 206 |
| Dividends declared and not paid | $ 300 | $ 271 | $ 240 |
