Accounting 381 Fall 2014
Project 2: Nike 2013 10-K Solution
(20 points)
Due: Tuesday, December 2, 2014 (at beginning of class).
Required: Answer the following questions based on your examination of the Nike 2013 10-K (pdf file is on D2L).
This project should be completed on an individual basis. Please answer questions on a scantron.
General questions
1. In what major business segment(s) does Nike operate?
a. Sportswear
b. Sports gear and accessories
c. Retail
d. Footwear, apparel, equipment, accessories and services
2. In what geographic segments does Nike operate?
a. U.S.; Canada, South America, Caribbean, Europe, Middle East, Africa; Asia Pacific
b. North America, Western Europe, Central and Eastern Europe, Greater China, Japan and Emerging
Markets
c. Americas, Asia, and Europe
d. U.S.; Europe, Middle East and Africa (collectively, “EMEA”); Asia Pacific; and Americas
3. On which stock exchange is Nike traded?
a. Penny stocks
b. AMEX
c. NYSE
d. NASDAQ
4. What is the annual report that provides a comprehensive overview of the company‘s business and financial
condition and includes audited financial statements?
a. SEC Form 8-K
b. SEC Form 10-K
c. SEC Form 10-Q
d. SEC Def 14-A
5. What is the SEC report that includes unaudited financial statements and provides a continuing view of the
company’s financial position during the year, and must be filed for each of the first three fiscal quarters of the
company’s fiscal year?
a. SEC Form 10-K
b. SEC Form 8-K
c. SEC Def 14-A
d. SEC Form 10-Q
6. Who is Nike’s auditor?
a. KPMG
b. Deloitte
c. PriceWaterhouseCoopers
d. Ernst & Young
7. Did Nike get an “unqualified” opinion?
a. No
b. Yes
8. What covers three financial aspects of an enterprise’s business – liquidity, capital resources, and results of
operations? It requires management to highlight favorable or unfavorable trends and to identify significant
events and uncertainties that affect these three factors.
a. Proxy statement
b. Statement of Retained Earnings
c. Press release
d. MD&A (Management’s Discussion and Analysis)
9. What are US publicly traded firms required to file with the SEC when soliciting shareholder votes? This
statement is useful in assessing how management is paid and potential conflict-of-interest issues with auditors.
The statement includes: voting procedure and information; background information about the company‘s
nominated directors; director compensation; executive compensation; a breakdown of audit and non-audit fees
paid to the auditor
a. Press release
b. MD&A (Management’s Discussion and Analysis)
c. Statement of Retained Earnings
d. Proxy statement
10. Does Nike have any incentive compensation plans for its employees?
a. No
b. Yes
11. Subsequent events are defined as the disclosure of material events or transactions that occur between the
balance sheet date and its issuance date. Did Nike disclose subsequent events in its 2013 financial
statements?
