Compute and Interpret the Z-score Information from the balance sheet, income statement, and statement of cash flows for Nike follows. Refer to these financial statements to answer the requirements. NIKE, INC. Consolidated Statements of Income Year Ended December 31 (In millions) 2019 2018 Revenues $39,117 $36,397 Cost of sales 21,643 20,441 Gross profit 17,474 15,956 Demand creation expense 3,753 3,577 Operating overhead expense 8,949 7,934 Total selling and administrative expense 12,702 11,511 Interest expense (income), net 49 54 Other (income) expense, net (78) 66 Income before income taxes 4,801 4,325 Income tax expense 772 2,392 Net income $ 4,029 $1,933 2019 2018 $ 4,466 $ 4,249 197 996 Consolidated Balance Sheets May 31 (in millions) Current Assets Cash and cash equivalents Short-term investments Accounts receivable, net. Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes 4,272 5,622 1,968 16,525 4,744 3,498 5,261 1,130 15,134 4,454 283 285 154 154 2,011 2,509 $23,717 $22,536 Total assets $6 $6 9 336 2,612 5,010 2,279 3,269 229 150 Liabilities and stockholders' equity Current Liabilities Current portion of long-term debt Notes payable Accounts payable Accrued pension liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Shareholders' equity Class A convertible—315 and 329 shares outstanding Class B—1,253 and 1,272 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings Total shareholders' equity Total liabilities and stockholders' equity 7,866 3,464 3,347 6,040 3,468 3,216 3 3 7,163 6,384 231 (92) 1,643 3,517 9,040 9,812 $23,717 $22,536 2019 2018 $4,029 $1,933 705 747 647 34 325 218 15 27 233 (99) (270) 187 (490) (255) (203) 35 1,525 1,515 5,903 4,955 Year Ended May 31 (in millions) Cash provided by operations: Net income Adjustments to reconcile net income to net cash provided by operations: Depreciation Deferred income taxes Stock-based compensation Amortization and other Net foreign currency adjustments Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventories (Increase) decrease in prepaid expenses and other current and non-current assets Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities Cash provided by operations Cash provided (used) by investing activities: Purchases of short-term investments Maturities of short-term investments Sales of short-term investments Additions to property, plant and equipment Disposals of property, plant and equipment Other investing activities. Cash provided (used) by investing activities Cash used by financing activities: Long-term debt payments, including current portion Increase (decrease) in notes payable Payments on capital lease and other financing obligations Proceeds from exercise of stock options and other stock issuances Repurchase of common stock Dividends-common and preferred Tax payments for net share settlement of equity awards Cash used by financing activities Effect of exchange rate changes on cash and equivalents Net increase (decrease) in cash and equivalents Cash and equivalents, beginning of year Cash and equivalents, end of year (2,937) (4,783) 1,715 3,613 2,072 2,496 (1,119) (1,028) 5 3 (25) (264) 276 (6) (325) (27) (6) 13 (23) 700 733 (4,286) (4,254) (1,332) (1,243) (17) (55) (5,293) (4,835) (129) 45 217 441 4,249 3,808 $4,466 $4,249 As of May 31, there were the approximate shares outstanding: 2019 - 1,253 million 2018 - 1,272 million As of May 31, the company's stock closed at the following values: 2019 - $77.14 2018 - $71.80 (a) Compute and compare the Altman Z-scores for both years. (Do not round until your final answer; then round your answers to two decimal places.) 2019 Z-score = 0 X 2018 Z-score = 0 x