Part II: Assess the quality of financial statements Experience, expertise, and effectiveness of the reporting team

Part II: Assess the quality of financial statements
Experience, expertise, and effectiveness of the reporting team
Cash flows, balance sheet and income statements usually help investors with critical
information required to determine the overall financial health. The financial statements of the
Nike’s company include Nike’s liabilities, assets, equity, stockholders, liquidity ratios, off
balance items, capital structure and intangible or fixed assets of the firm. This explains Nike’s
cash especially from operating activities; return on the invested capital; cash from such financing
activities and profitability using various ratios in the cash flow statement.
Control and audit processes in place
One of the first step towards review of the firm’s financial health is always to review
their liabilities and assets. Nike’s balance sheet reflects a healthy financial position with source
of income and huge assets. Nike’s assets show it grew from 22,536 in 2017 to 23,259 in 2018
(NIKE I. , 2018) .Assets include fixed assets like plant, real estate and machinery as well as
current assets such as accounts receivables or cash. A firm as Nike with large pool of assets have