Week 5 reply



Denzel Ridley 

Last edited: Friday, November 19, 2021 10:29 PM EST
  1. Reading the notes to the financial statements, as well as the balance sheet, post information about the Accounts Receivable for your company. Who owes the company money? It is possible that your selected company does not report accounts receivable as a separate line item because the company does not generally sell on credit terms.

The account receivable for Nike are considered as non current and recorded as deferred income assets. As of May 20,2021 uncollected accounts receivable 93 million and 214 million dollars. There are multiple countries that owe Nike, also there are creditors. 

  1. Search for the phrase "Bad Debts" or Allowance (for collectible accounts). When you read the balance sheet, you may see that the receivables are listed as a net of $X,XXX to show the Allowance for Bad Debts. Comment about the changes in Accounts Receivable and the Allowance for Bad Debts. Are they increasing or decreasing? How does this relate to sales (are sales increasing or decreasing)?

The changes in accounts receivable and the allowance of bad debt has had a significant increase since COVID 19. May 2020 and 2021 shows a increase from 93 million dollars to 214 million dollars. There are many more people owing Nike money within the last year. The increase has risen due to the fact the economy has inflated. However, on the other hand sales Nike sales has dropped 4% due to COVID 19. 

  1. Property, Plants, and Equipment / PPE (Capital Assets; Fixed Assets): Comment about PPE and accumulated depreciation. How are these values changing from year to year: PPE, Accumulated Depreciation, and Net PPE?

Due to COVID 19 PPE has taken decreased, however depreciation has increased over the past 2 years. The values of PPE, Depreciation and Net PPE has changed due to the unexpected  change of events that has taken place. When stocks crash and product inflates or deflates you will have a major decrease in product but a increase in depreciation because it will not be valued at the same price. In 2021 PPE was 4,904,000 and in 2020 it was 4,866,000. 


Inline XBRL Viewer (sec.gov)

Bain, Mark (2021) Sales at normally resilient Nike plunged due to Covid-19 — Quartz (qz.com)

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