Question

Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2022 (in millions): other plant assets $977.0, land $240.0, patents and trademarks (at cost) $500.0, machinery and equipment $2,080.0, buildings $970.0, goodwill (at cost) $220.0, accumulated amortization $60.0, and accumulated depreciation $2,180.
Required:
Prepare a partial balance sheet for Nike for these items. (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Answer 1

Answer:

Nike, Inc.

NIKE, INC.

Partial Balance Sheet as of May 31, 2022

Long-term Assets:

Tangible assets:

Land                                                           $240.0

Buildings                                   $970.0

Machinery and equipment   $2,080.0

Other plant assets                   $977.0

Accumulated depreciation  ($2,180)        1,847.0

Total net book value                             $2,087.0                      

Patents and trademarks (at cost)           $500.0

Goodwill (at cost)                                    $220.0

Accumulated amortization                      ($60.0)

Total net book value                              $660.0

Total long-term assets                        $2,747.0

Explanation:

a) Data and Calculations:

Plant assets and intangible assets for the year ended May 31, 2022 (in millions):

Other plant assets $977.0

Land $240.0

Patents and trademarks (at cost) $500.0

Machinery and equipment $2,080.0

Buildings $970.0

Goodwill (at cost) $220.0

Accumulated amortization $60.0

Accumulated depreciation $2,180

b) Long-term assets are non-current resources that the entity owns as a result of past events, which are expected to generate future benefits.  Some long-term assets have physical properties.  They can be touched or seen.  They are tangible assets and are subject to depreciation.  Intangible assets do not have physical substance and are amortized.