Homework Nike

ã…‡Homework #2 and Solutions: Nike

1. Comment on the tax provide for the pecuniary year 2000 in Note 6.

The live preparedness ($294.4) represents the portion of the income tax expense currently payable ground on 2000 tax returns. Total income tax expense ($340.1) represents the join of tax relate to reported EBT. The difference is due to makeshift timing differences between when items are recognized for financial asseveration purposes and when they are recognized for income tax purposes. The difference between the current provision and the total provision is the deferred provision ($45.7). The deferred provision represents taxes that each have been paid in earlier years or taxes that will be paid in future years. shipboard timing differences result in recognizing Deferred evaluate Assets (DTAs) or Deferred Tax Liabilities (DTLs) on the balance sheet.

2. Comment on the Other Income for the fiscal year 2000.

Examining the MD&A section, Other income/expense was a net expense of $23.2 million in fiscal 2000 versus a net expense of $21.5 million in fiscal 1999. remarkable amounts embroild in other income/expense were interest income, return sharing expense, goodwill amortization, certain foreign currency change gains and losses, and asset disposal gains and losses.

Notes 1,10,11,MD&A.



Typically, other income/expense contains non- event related in operation(p) gains, losses and income and expense. In theory, the B section of the income statement should include interest expense and other non-core gains, losses, income and expense. (The A section includes core operations; the C section includes items that are not related to operations and unlikely to re-occur in the foreseeable future). It is important to break apart what is included in Other to evaluate what should is sustainable and to brand between core and non-core items. Also, although the amount in Other whitethorn be small, it may consist of offsetting significant items.

Total 2000 Other...If you want to get a full essay, order it on our website: Orderessay



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