50.1K

Verified Solution

Link Copied!

NIKE, Incorporated, with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers of athletic shoes and sports apparel. Assume the following activites occurred during a recent yeas. The dollar amounts in (b) and (b) are presented "in millions," and the dollar amount in (C) is per share. When reporting amounts "in millions," exclude the 000,000 . a. Purchased $216 in equipment: paid by signing a $5 long-term note and fulfilling the rest with cash. b. Issued $21 in additional common stock for cash contributions made by stockholders. c Several NIKE investors sold their own stock to other investors on the stock exchange for $110 per share of stock. Required: 1. For each of these events, perform transaction analysis and indicate the account, amount (in millions), and direction of the effect on the accounting equation. Check that the accounting equation remains in bolance after each transaction. 2. Which statement best describes transaction (c)? 3. Did these transactions change the extent to which NikE relied on stockholders versus creditors for financing? Complete this question by entering your answers in the tabs below. For each of these events, perform transaction analys and indicate the account, anlount (in milions), and direction of the effect on the accounting equation. Check tha remains in balance after each transaction. (Enter any decreases to account balances with a minus sign, Enter your answers in multions (1.e., 10,000,000 should be ente

Answer & Explanation Solved by verified expert

See Answer