Select a publicly held company to use as the basis for this paper. Use the Internet to acquire a copy of your selected company's most recent financial statements. Prepare a paper in which you analyze the disclosures contained within the notes to the financial statements related to cash and cash equivalents, receivables, and inventories. Include a list identifying the components of the organization's cash and cash equivalents.
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DISCLOSURES IN NOTES RELATED TO CASH AND CASH EQUIVALENTS, RECEIVABLES, AND INVENTORIES OF NIKE INC.
The available for sales securities that are deemed to be cash equivalents have been valued at $252.3 and $283.5 million at Level 1 and Level 2 respectively. In addition, Nike acquired Umbro for cash 290.5 million in British pounds. The company sold off Starter brand to Iconix for $60.0 million cash. In addition, the company sold off NIKE Bauer Hockey Corp. for $189.2 million in cash. Finally, there is a net gain on hedge derivates to the tune of $366.4 million in 2008 (Nike INC 2008).
The total accounts receivables on November 30, 2008 were $2,737.9 and on May 31st were 2,797.3 million. Non functional currency receivables and payables are reflected in other income.
The inventory balances at November 30, 2008 and May 31, 2008 were substantially finished goods. The inventory balances on November 30, 2008 were $2,419.1 and on May 31st were 2,438.4 million. On November 30, 2008 the Company had letters of credit outstanding totaling $153.5 million. These letters of credit were issued for the purchase of inventory (Nike INC 2008).
The company has given a fair value measurement of securities. The securities have been listed in a hierarchy by way of Level 1 and Level 2. The fair value method indicates that cash equivalent securities have been classified in ...
the disclosures in the notes to the financial statements are discussed very comprehensively in this explanation..