Final answer:
The student's question involves conducting a horizontal analysis of Nike, Inc.'s balance sheet using the year 2021 as a base year. However, actual data from Nike's balance sheet is not provided, and instead, the question includes references to hypothetical banks' balance sheets. A horizontal analysis compares financial information across periods, but actual data is needed to perform this analysis.
Step-by-step explanation:
The student is requesting a horizontal analysis of the balance sheet for Nike, Inc., using the year 2021 as the base year. Horizontal analysis is a financial analysis technique that compares historical financial information over a series of reporting periods. It involves calculating both the amount and percentage changes in line items from one period to another, highlighting trends and growth patterns. However, the question seems to have a typographical error; instead of Nike, Inc.'s balance sheet, references are made to hypothetical balance sheets for Safe and Secure Bank and Singleton Bank, which detail changes in business plans and assets.
In performing horizontal analysis, one would typically subtract the base period amount from the current period amount, divide by the base period amount, and then multiply by 100 to find the percentage change. This comparison helps in assessing the company's performance and strategic shifts over time. Since actual balance sheet numbers are not provided here, the procedure is illustrated conceptually rather than with real data.
The simplified balance sheet example referred to as a 'T-account' indicates the two-column format typically used for balance sheets, labeled 'Assets' on one side and 'Liabilities' on the other, forming a T-shape. If we had Nike's actual balance sheet data, examples of line items we might analyze could include changes in cash reserves, inventory levels, long-term debt, or equity. Without the specific data, we cannot complete the horizontal analysis.