Question

Assume that Nike reported the following information:   

• Income before tax $4,231
• income attributable to non-controlling interests 830
• income tax expense 1,270

Calculate net income attributable to Nike's common stockholders.

Answer 1

Solution

Calculation of net income attributable to Nike’s common stockholders:

Net income attributable common stockholders = net income – noncontrolling interest

Net income = income before taxes – income tax expense

Hence, net income attributable to common stockholders -

Income before taxes = $4,231

Less: income tax expense = $1,270

Net income = 2,961

Less: income attributable to noncontrolling interest = 830

Net income attributable to common stockholders = 2,131

Net income attributable to Nike’s common stockholders = 2,131