Nike Inc.

sales budget

In millions $
Budget sales (units)
Selling price per unit
Total revenue

*As per past years working units are increasing with 9.3%

Nike Inc.
Production budget
In millions $

sales unit
add: desire ending inventory
Total inventory needed
Less: beg. inventory
Units to be produces

*As per past years working ending inventory is increasing with 9.3% of the following month

Nike Inc.
Direct-Material budget
In millions $

production In unit
Material per unit
production needs
add: desired ending inventory
Total needed
Less: beg. Inventory
material to be purchased

Assumptions:
8 pounds of material are required per unit of product.
Nike Inc.
Direct-Labor budget
In millions $

production in units
Direct-Labor hours
Labor hours required
wage rate
Total direct labor cost

Assumptions:
each unit of product requires 0.2 hours of direct labor.
wage rate per hour is $ 7

Nike Inc.
overhead budget
In millions $

operating overhead exp

Avg operating expenses are 22% of revenue as per working

Nike Inc.
selling and administration budget
In millions $

Demand creation expense

Avg demand creation expense are 9.5% of revenue as per working

Nike Inc.
Cash Receipt budget
In millions $

accounts rec. at 31 May 2019

June sales
80% of 3562.907
20% of 3562.907
July sales
80% of 3894.257078
20% of 3894.257078
Aug sales
80% of 4256.422986
20% of 4256.422986
Total cash collections
As per accounts —The May 31 accounts receivable balance of $4272 will be collected in full.
Assumptions:
—The company’s collection pattern is:
80% collected in the month of sale,
20% collected in the month following the sale,

Nike Inc.
Cash Disbursement budget
In millions $

accounts payable. At 31 May

June purchases
50% of 641.0248x10
50% of 641.0248x10
July purchases
50% of 700.8035x10
50% of 700.8035x10
Aug purchases
50% of 723.32866x10
Total cash payments for material

*As per the May 31 accounts payable balance is $2612

Assumptions:
Nike pays $ 10 per pound for its materials.
50% of a month’s purchases are paid for in the month of purchase; the remaining half is paid in the following
No discounts are available.

Nike Inc.
Cost of goods manufactured
In millions $

Direct material:
Beg material inventory
(74.25538 x 10) (81.198 x 10) (88.77209 x 10)
Add material purhases
(641.0248 x 10) (700.803585 x 10) (723.32866 x 10)
material available for use
less: ending material inventory
(64.9586 x 10) (71.017678 x 10) ( x 10)
Direcr material used
Direct labor
manufecturing overhead
Total manufecturing cost
Add: beg. Work in process inventory
Deduct: End work in process inventory
Cost of goods manufactured

Nike Inc.
Cost of goods sold
In millions $

cost of goods manufactured

add: beg. Finished-goods Inventory
cost of goods available for sale
Less: End finished-goods inventory
cost of goods sold

The cost of goods manufactured at the beginning of June can be divided by the units manufactured,to arr

Nike Inc.
Budgeted income statement
for the three months ended 31 Aug 2019

Revenue
cost of goods sold
Gross margin
less: selling expenses expenses
Net income
 June July Aug quarter

35.6290675 38.942570778 42.56423 117.13586814

100 100 100
3562.90675 3894.2570778 4256.423 11713.586814

June July Aug quarter SEP

35.6290675 38.942570778 42.56423 117.13586814 sales unit
512.30475 560.20524413 612.5844 1685.0944286 add desire ending inve
547.9338175 599.1478149 655.1487 1802.2302967
468.5 512.30475 560.2052 1541.0099941 less beg
79.4338175 86.843064903 94.94342 261.22030259

June July Aug quarter sep

79.4338175 86.843064903 94.94342 261.22030259 production in unit
8 8 8 8 per unit
635.47054 694.74451922 759.5474 2089.7624207
64.958612547 71.017678299 81.79346 217.76974881
700.42915255 765.76219752 841.3408 2307.5321695
59.4043096 64.958612547 71.01768 195.38060045
641.02484295 700.80358497 770.3231 2112.1515691

June July Aug quarter

79.4338175 86.843064903 94.94342 261.22030259
0.2 0.2 0.2 0.2
 15.8867635 17.368612981 18.98868 52.244060518
7 7 7 7
111.2073445 121.58029086 132.9208 365.70842362

June July Aug quarter

783.839485 856.73655711 936.4131 2576.989099

budget

June July Aug quarter

338.47614125 369.95442239 404.3602 1112.7907473

June July Aug Quarter

4272 4272

2850.3256 2850.3256
712.5814 712.5814

3115.4056624 3115.4056624
778.8514 778.8514156

3405.138 3405.1383888

7122.3256 3827.9870624 4183.99 15134.302467

get

June July Aug Quarter

2612 2612

3205.124 3205.124
3205.124 3205.124

3504.0175 3504.0175
3504.018 3504.0175

3616.643 3616.6433
5817.124 6709.1415 7120.661 19646.9263

ing half is paid in the following month.

red

June July Aug Quarter

742.5538 811.9826 887.7209 2442.2573

6410.2484295 7008.0358497 7703.231 21121.515691 641.024842947555

7152.8022295 7820.0184497 8590.952 23563.772991

649.58612547 710.17678299 817.9346 2177.6974881

6503.216104 7109.8416667 7773.018 21386.075503
111.2073445 121.58029086 132.9208 365.70842362
783.839485 856.73655711 936.4131 2576.989099
7398.2629335 8088.1585147 8842.352 24328.773025

7398.2629335 8088.1585147 8842.352 24328.773025

June July Aug Quarter

7398.2629335 8088.1585147 8842.352 24328.773025 per unit cost
43634.89372 47714.756282 52176.09 43634.89372
51033.156653 55802.914797 61018.44 167854.50902
47714.756282 52176.085995 57054.55 47714.756282
3318.4003707 3626.8288023 3963.888 10909.11671

93.137446573

In millions $
11713.586814
10909.11671
22622.703523
1112.7907473
21509.912776
 2019 2018 2017
In million $ In million $ In million $
Revenue 2019 39,117 36,397 34,350
avg selling price per unit 100 100 100
No. of units 391.17 363.97 343.5

32.5975 30.3308333 28.625 0.930465

2019 2018
In million $ In million $
inventory balances at 5,622 5,261 0.935788
per month 468.5 438.416667 0.935788

109.349542729601
669.554786854602
778.904329584203
560.205244125
218.699085459203

109.349542729601
8
874.796341836812
59.4043095995153
700.80358497168 723.328665206314
93.1374465731154
0.943759
wage
research and development cost
rent
depreciation
amortization
professional services