A. Financial Reporting Project

School: Northeastern University - Course: ACC 2100 - Subject: Accounting

The Financial Reporting Project ACCT1201 10513 M, W, Th 4:30-6:00 Company: Nike Company Background A.What is the ticker symbol of your company? Identify the stock exchange(s) where your company stock trades. Nike's Ticker Symbolis NKE, and the company stocks trades through NYSE (New York Stock Exchange). B.Read the auditor's report included in the annual report of the company and explain its purpose. Identify the name of the auditing firm. a.Nike's Independent Auditor isPricewaterhouse Coopers LLC (PWC). The purpose of theauditor's reportis to state that the independent auditors ensure that Nike's financial statements are reports are accurate andfollow all the GAAP requirements. C.Briefly explain the major operations of your company. What products does it sell and/or services does it render? Identify the major competitors of the company. a.The major operations of our company include the selling of sneakers, athletic wear, and athletic gear. The major competitors of the company are Under Armour, Reebok, Adidas, Anita, ASICS, Li Ning, Lululemon Athletics, Puma, and V.F. Corporation. D.Using the Internet, record the closing price of the stock on the Friday of the week prior to the due date of this report. On Friday October 30th, 2020, Nike's closing price of stock was 120.08 USD. Developments relating to the Company

A.Is the demand for the products and services provided by this company increasing, decreasing, or staying stable? Briefly explain the factors that are influencing the demand for products and services of this company. US$ (millions)20192018201720162015 Revenues39,11736,39734,35034,3503,273 The demand for Nike's products is increasing, seeing that the Net Sales (Revenues) has increased steadily over the last three years. In the Fiscal 2019 Year, record revenues were reported with a growth of approximately 7% ($39.1 billion in 2019 compared to $36.4 billion in 2018). Nike asserts the growth in sales is fueled by recent investments in innovative products and digital platforms. Additionally, the Fiscal 2019 year was the first full year executing Nike's new strategy, Triple Double strategy, which aims to increase revenue growth. B.Identify and briefly explain significant events (technological breakthroughs, regulatory changes) that may have affected the company recently. In terms of technological breakthroughs, Nike has adopted the following: Nike Fit: a foot scanning solution that integrates"computer science, data science, machine learning, artificial intelligence, and recommendation algorithms"to assist customers in finding their best fit (techcrunch.com) Nike Fuel Band and Nike+:upon collaborating with Apple's COO at the time, Tim Cook, Nike developed Nike+, their mobile app platform, combined with the Nike Fuel Band, which users wear on their wrists andworks in parallel with Apple's iPhone. With this technology, users are able to track their distances and speed (digital.hbs.edu)