Consolidated Income Statement for NIKE (amounts in millions) Year 6 $3,790 $2,301 Year 7 Year 8 Sales Revenue Cost of Goods Sold Gross Profit $4,761 $6,471 $3,065 4,307 Selling and Admin Expenses $974 $1,210 $1,589 Interest Expense Other Miscellaneous Expenses 15 9 S 24 $ 12 $ 39 $ 37 Earnings before Income Taxes EBIT What trends are you observing and how does it impact earnings before income taxes? Question # 4 Recognition of Revenues: NIKE recognizes revenues at time of sale to its customers and as it earns fees on sales by licensees. Does this timing of revenue recognition seem appropriate? Please answer YES or NO. Question # 5 e Acquisition; NIKE acquired Bauer, Inc., the world's largest hockey equipment Corporat manufacturer, in the 3Td quarter of Year 7 for $409 milion and used the purchase method of accounting. NIKE allocated $73 million to tangible net assets and $336 million to intangible assets. Please describe in one paragraph what could be in your best estimate the intangible net assets that NIKE acquired? Consolidated Income Statement for NIKE (amounts in millions) Year 6 $3,790 $2,301 Year 7 Year 8 Sales Revenue Cost of Goods Sold Gross Profit $4,761 $6,471 $3,065 4,307 Selling and Admin Expenses $974 $1,210 $1,589 Interest Expense Other Miscellaneous Expenses 15 9 S 24 $ 12 $ 39 $ 37 Earnings before Income Taxes EBIT What trends are you observing and how does it impact earnings before income taxes? Question # 4 Recognition of Revenues: NIKE recognizes revenues at time of sale to its customers and as it earns fees on sales by licensees. Does this timing of revenue recognition seem appropriate? Please answer YES or NO. Question # 5 e Acquisition; NIKE acquired Bauer, Inc., the world's largest hockey equipment Corporat manufacturer, in the 3Td quarter of Year 7 for $409 milion and used the purchase method of accounting. NIKE allocated $73 million to tangible net assets and $336 million to intangible assets. Please describe in one paragraph what could be in your best estimate the intangible net assets that NIKE acquired