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E11-33 Operating Section of Statement of Cash Flows (Indirect Method) Following are the income statement...

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Accounting

E11-33 Operating Section of Statement of Cash Flows (Indirect Method)

Following are the income statement and balance sheet for Nike, Inc. for the year ended May 31, 2019, and a forecasted income statement and balance sheet for 2020.

Prepare the operating activities section of a forecasted statement of cash flows for 2020 using the indirect method. Treat deferred tax assets and liabilities as operating, Operating expenses (cost of sales) for 2020 include estimated depreciation expense of $751 million, amortization expense of $2 million, and stock-based compensation of $325 million. (Hint: Stock-based compensation is a noncash expense like depreciation and must be added back in the operating section. The amount expensed is also added to Nikes Capital in excess of stated value account in the balance sheet.)

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NIKE INC. Income Statement For Year Ended May 31

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