NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44: 
|    |                                              |
|---:|:---------------------------------------------|
|  2 | NIKE, Inc. Consolidated Statements of Income |


|    |                                          |                    |        |      |        |      |        |        |    |    |        |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
|  2 |                                          | Year Ended May 31, |        |      |        |      |        |        |    |    |        |
|  3 | (In millions, except per share data)     | 2018               |        | 2017 |        | 2016 |        |        |    |    |        |
|  4 | Revenues                                 | $                  | 36,397 |      |        | $    | 34,350 |        |    | $  | 32,376 |
|  5 | Cost of sales                            | 20,441             |        |      | 19,038 |      |        | 17,405 |    |    |        |
|  6 | Gross profit                             | 15,956             |        |      | 15,312 |      |        | 14,971 |    |    |        |
|  7 | Demand creation expense                  | 3,577              |        |      | 3,341  |      |        | 3,278  |    |    |        |
|  8 | Operating overhead expense               | 7,934              |        |      | 7,222  |      |        | 7,191  |    |    |        |
|  9 | Total selling and administrative expense | 11,511             |        |      | 10,563 |      |        | 10,469 |    |    |        |
| 10 | Interest expense (income), net           | 54                 |        |      | 59     |      |        | 19     |    |    |        |
| 11 | Other expense (income), net              | 66                 |        |      | (196   | )    |        | (140   | )  |    |        |
| 12 | Income before income taxes               | 4,325              |        |      | 4,886  |      |        | 4,623  |    |    |        |
| 13 | Income tax expense                       | 2,392              |        |      | 646    |      |        | 863    |    |    |        |
| 14 | NET INCOME                               | $                  | 1,933  |      |        | $    | 4,240  |        |    | $  | 3,760  |
| 16 | Earnings per common share:               |                    |        |      |        |      |        |        |    |    |        |
| 17 | Basic                                    | $                  | 1.19   |      |        | $    | 2.56   |        |    | $  | 2.21   |
| 18 | Diluted                                  | $                  | 1.17   |      |        | $    | 2.51   |        |    | $  | 2.16   |
| 20 | Dividends declared per common share      | $                  | 0.78   |      |        | $    | 0.70   |        |    | $  | 0.62   |

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

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, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46: 
|    |                                        |
|---:|:---------------------------------------|
|  2 | NIKE, Inc. Consolidated Balance Sheets |

|    |                                                      |         |        |      |        |    |        |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
|  2 |                                                      | May 31, |        |      |        |    |        |
|  3 | (In millions)                                        | 2018    |        | 2017 |        |    |        |
|  4 | ASSETS                                               |         |        |      |        |    |        |
|  5 | Current assets:                                      |         |        |      |        |    |        |
|  6 | Cash and equivalents                                 | $       | 4,249  |      |        | $  | 3,808  |
|  7 | Short-term investments                               | 996     |        |      | 2,371  |    |        |
|  8 | Accounts receivable, net                             | 3,498   |        |      | 3,677  |    |        |
|  9 | Inventories                                          | 5,261   |        |      | 5,055  |    |        |
| 10 | Prepaid expenses and other current assets            | 1,130   |        |      | 1,150  |    |        |
| 11 | Total current assets                                 | 15,134  |        |      | 16,061 |    |        |
| 12 | Property, plant and equipment, net                   | 4,454   |        |      | 3,989  |    |        |
| 13 | Identifiable intangible assets, net                  | 285     |        |      | 283    |    |        |
| 14 | Goodwill                                             | 154     |        |      | 139    |    |        |
| 15 | Deferred income taxes and other assets               | 2,509   |        |      | 2,787  |    |        |
| 16 | TOTAL ASSETS                                         | $       | 22,536 |      |        | $  | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY                 |         |        |      |        |    |        |
| 18 | Current liabilities:                                 |         |        |      |        |    |        |
| 19 | Current portion of long-term debt                    | $       | 6      |      |        | $  | 6      |
| 20 | Notes payable                                        | 336     |        |      | 325    |    |        |
| 21 | Accounts payable                                     | 2,279   |        |      | 2,048  |    |        |
| 22 | Accrued liabilities                                  | 3,269   |        |      | 3,011  |    |        |
| 23 | Income taxes payable                                 | 150     |        |      | 84     |    |        |
| 24 | Total current liabilities                            | 6,040   |        |      | 5,474  |    |        |
| 25 | Long-term debt                                       | 3,468   |        |      | 3,471  |    |        |
| 26 | Deferred income taxes and other liabilities          | 3,216   |        |      | 1,907  |    |        |
| 27 | Commitments and contingencies (Note 15)              |         |        |      |        |    |        |
| 28 | Redeemable preferred stock                           | -       |        |      | -      |    |        |
| 29 | Shareholders' equity:                                |         |        |      |        |    |        |
| 30 | Common stock at stated value:                        |         |        |      |        |    |        |
| 31 | Class A convertible - 329 and 329 shares outstanding | -       |        |      | -      |    |        |
| 32 | Class B - 1,272 and 1,314 shares outstanding         | 3       |        |      | 3      |    |        |
| 33 | Capital in excess of stated value                    | 6,384   |        |      | 5,710  |    |        |
| 34 | Accumulated other comprehensive loss                 | (92     | )      |      | (213   | )  |        |
| 35 | Retained earnings                                    | 3,517   |        |      | 6,907  |    |        |
| 36 | Total shareholders' equity                           | 9,812   |        |      | 12,407 |    |        |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY           | $       | 22,536 |      |        | $  | 23,259 |

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46





Question: How can we calculate Nike's Days Payable Outstanding (DPO) for 2018, and what does the result indicate about the company's payment practices?
Answer: To calculate Nike's Days Payable Outstanding (DPO) for 2018:

Formula:
DPO = (Average Accounts Payable / Cost of Goods Sold) × 365

Accounts Payable at the end of 2017 = $2,048 million
Accounts Payable at the end of 2018 = $2,279 million
Cost of Goods Sold (COGS) for 2018 = $20,441 million
Step 1: Calculate Average Accounts Payable:
Average Accounts Payable = (Accounts Payable at 2017 + Accounts Payable at 2018) / 2
Average Accounts Payable = ($2,048 million + $2,279 million) / 2 = $2,163.5 million

Step 2: Calculate DPO:
DPO = ($2,163.5 million / $20,441 million) × 365 ≈ 38.6 days

Final Answer:
Nike's Days Payable Outstanding (DPO) for 2018 is approximately 39 days. This indicates that, on average, Nike took about 39 days to pay its suppliers, reflecting its payment practices and efficiency in managing outgoing payments.