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    NIKE

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    Dave Mendoza
    Nike requires debt financing to fund its operations at the Nike Park Imus District branch. Bank loans would provide reliable funding secured by business assets. Projections show total annual sales of $332,790 with net income of $35,090. The branch is expected to achieve a return on investment of 21.82%, above the store average.

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    NIKE

    Uploaded by

    Dave Mendoza
    18 views2 pages
    Nike requires debt financing to fund its operations at the Nike Park Imus District branch. Bank loans would provide reliable funding secured by business assets. Projections show total annual sales of $332,790 with net income of $35,090. The branch is expected to achieve a return on investment of 21.82%, above the store average.

    Original Description:

    NIKE IS SHOES

    Original Title

    NIKE (1)

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    Nike requires debt financing to fund its operations at the Nike Park Imus District branch. Bank loans would provide reliable funding secured by business assets. Projections show total annual sales of $332,790 with net income of $35,090. The branch is expected to achieve a return on investment of 21.82%, above the store average.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views2 pages

    NIKE

    Uploaded by

    Dave Mendoza
    Nike requires debt financing to fund its operations at the Nike Park Imus District branch. Bank loans would provide reliable funding secured by business assets. Projections show total annual sales of $332,790 with net income of $35,090. The branch is expected to achieve a return on investment of 21.82%, above the store average.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    NIKE - FINANCIALS

     Capital. Requirements/Source of Funds


    Nike Park Imus District branch, supplier of athletic shoes and apparel, requires effective
    financing to be successful and strategic. The best source of raising funds would be debt
    financing. In debt financing, Nike would have to borrow funds from the banks or domestic
    securities market. The bank loans are often secured against business assets, and often range in
    amount according to the security and prospects of the business. Bank loans have some
    advantages in that they are reliable and secure as Nike, Inc. would be assured of the amount
    required to fund the campaign.

     Sales Forecast

    JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR APRIL MAY

    TOTAL 15,796 13,952 18,666 13,681 13,431 10,151 25,984 16,010 16,173 16,143 16,750 16,754
    SALES

     Projected Income Statement

    INCOME STATEMENT
    REVENUES 332,790
    COST OF SALES 179,810
    TOTAL SELLING AND ADMIN EXPENSES 107,580
    EARNINGS BEFORE INTEREST AND TAXES 45,400
    INTEREST EXPENSE 300
    TAXES 10,010
    NET INCOME 35,090

    ASSETS
    CASH 38,520
    RECEIVABLES 36,510
    INVENTORY 47,160
    PREPAID EXPENSES AND OTHER CURRENT ASSETS 21,400
    CURRENT ASSETS 164,310
    IDENTIFIABLE TANGIBLE ASSETS 2,800
    DIFFERED INCOME TAXES and OTHER ASSETS 22,010
    TOTAL ASSETS 168,400

    LIABILITIES
    NOTES PAYABLE 3,250
    ACCOUNTS PAYABLE 23,170
    ACCRUED EXPENSES 42,960
    LONG TERM DEBT-CURRENT 1,420
    CURRENT LIABILITIES 70,800
    LONG TERM DEBT 9,370
    DEFERRED INCOME TAXES and OTHER LIABILITIES 14,000
    TOTAL LIABILITIES 21,470
    OWNER’S EQUITY 141,160
    RETAINED EARNINGS 60,100
    TOTAL LIABILITIES & EQUITY 168,400

     ROI Analysis

    HIGH AVERAGE LOW


    87.01% 21.82% 12.99%
    (DECEMBER) (NOVEMBER)

    Nike Park Imus Branch will achieve return on average invested assets of 21.82 %, which is above
    store average return on investment.

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