Suppose the comparative balance sheets of Nike, Inc. are presented here.
NIKE, INC.
Condensed Balance Sheet
May 31
($ in millions)
2017 2016
Assets Current Assets $9,734 $8,839
Property, plant, and equipment (net) 1,958 1,891
Other assets 1,558 1,713
Total assets $13,250 $12,443
Liabilities and Stockholders' Equity Current Liabilities $3,277 $3,322
Long-term liabilities 1,280 1,296
Stockholders' equity 8,693 7,825
Total liabilities and stockholders' equity $13,250 $12,443
Prepare a horizontal analysis of the balance sheet data for Nike, using 2016 as a base.
Horizontal Analysis:
Horizontal analysis is a method used to establish a trend to show how the assets or liabilities of a company have changed over the period time. Using this method, current year records can be compared with the previous year records