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Please calculate the Gross profit percentage, current ratio, debt-to-equity ratio, and earnings per share for Columbia Sportswear Company. Using the ratios, evaluate the financial statements from Columbia Sportswear Company. What does each of your four ratios indicate about the financial performance of the company? Based on your financial analysis: would you invest in this company? Why or why not?

Please calculate the Gross profit percentage, current ratio, debt-to-equity ratio, and earnings per share for Columbia Sportswear Company. Using the ratios, evaluate the financial statements from Columbia Sportswear Company. What does each of your four ratios indicate about the financial performance of the company? Based on your financial analysis: would you invest in this company? Why or why not?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please calculate the Gross profit percentage, current ratio, debt-to-equity ratio, and earnings per share for Columbia Sportswear Company. Using the ratios, evaluate the financial statements from Columbia Sportswear Company. What does each of your four ratios indicate about the financial performance of the company? Based on your financial analysis: would you invest in this company? Why or why not?

Adjustments to reconcile net income to net cash provided by operating activities: Loss on disposal or impairment of property, plant, and equipment A-4 Appendix A Columbia Sportswear Company Appendix A Columbia Sportswear Company COLUMBIA SPORTSWEAR COMPANY A-5 COLUMBIA SPORTSWEAR COMPANY TATEJA ON CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (In thousands) Year Ended December 31, 2016 2017 2015 Year Ended December 31. 2,377,045 2$ Net income 2017 2,466,105 2,326,180 2016 2015 Net sales 1,306,143 1,266,697 1,252,680 Depreciation and amortization Cost of sales 1,159,962 1,110,348 1,073,500 112,315 198,439 Gross profit 910,894 864,084 831,971 179,851 Selling, general and administrative expenses 13,901 10,244 Deferred income taxes 8,192 59,945 Stock-based compensation Excess tax benefit from employee stock plans Changes in operating assets and liabilities: 60,016 Net licensing income 262,969 256,508 249,721 1,927 56,521 Income from operations 4,515 2,003 4,805 5,098 1,531 (1,099) (2,834) 44,851 Interest income, net (429) (1,041) (19,178) (11,709) 11,286 10,986 Interest expense on note payable to related party (Note 21) Other non-operating expense (321) (572) Accounts receivable 11,672 Inventories (7,873) 266,734 256,898 247,319 Income before income tax (154,419) (58,459) (67,468) Prepaid expenses and other current assets (24,197) 36,710 (40,419) Income tax expense (Note 10) Other assets 46,662 112,315 198,439 179,851 (18,777) (103,296) Net income 7,192 6,541 Accounts payable (19,241) 5,514 (5,452) 4,411 Net income attributable to non-controlling interest 2$ 105,123 2$ 191,898 2$ 174,337 Accrued liabilities 931 (5,948) (2,524) Net income attributable to Columbia Sportswear Company 30,568 Income taxes payable 1,483 11,418 Earnings per share attributable to Columbia Sportswear Company (Note 16): 11,581 24 1.51 2.75 Other liabilities 4,847 (2,017) 2.48 Basic 58,702 Net cash provided by operating activities 4,768 1.49 2.72 2.45 (10,994) Diluted 5,798 Cash flows from investing activities: 2,468 4,966 Weighted average shares outstanding (Note 16): 341,128 275,167 95,105 69,759 69,683 70,162 Basic Purchases of short-term investments Diluted 70,453 70,632 71,064 Sales of short-term investments (130,993) (21,263) (38,208) Capital expenditures Proceeds from sale of property, plant, and equipment 36,282 21,263 64,980 See accompanying notes to consolidated financial statements (53,352) (49,987) (69,917) Net cash used in investing activities 279 97 144 Cash flows from financing activities: (147,784) (49,890) (43,001) Proceeds from credit facilities 3,374 Repayments on credit facilities Proceeds from issuance of common stock under employee stock plans 62,885 53,429 (3,374) (64,825) (51,479) 19,946 13,167 17,442 Tax payments related to restricted stock unit issuances Excess tax benefit from employee stock plans Repurchase of common stock Cash dividends paid Payment of related party note payable (3,662) (5,117) (4,895) 7,873 (35,542) (11) (70,068) (50,909) (48,122) (43,547) (14,236) Net cash used in financing activities Net effect of exchange rate changes on cash Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (84,403) (42,023) (91,245) 12,836 (1,635) (4,647) 121,777 181,619 (43,788) 551,389 369,770 413,558 673,166 $ 551,389 $ 369,770 Supplemental disclosures of cash flow information: 81,045 70,424 87,350 Cash paid during the year for income taxes 685 1,049 1,115 Cash paid during the year for interest on note payable to related party Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet paid 3,188 2,710 4,698 See accompanying notes to consolidated financial statements
Transcribed Image Text:Adjustments to reconcile net income to net cash provided by operating activities: Loss on disposal or impairment of property, plant, and equipment A-4 Appendix A Columbia Sportswear Company Appendix A Columbia Sportswear Company COLUMBIA SPORTSWEAR COMPANY A-5 COLUMBIA SPORTSWEAR COMPANY TATEJA ON CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (In thousands) Year Ended December 31, 2016 2017 2015 Year Ended December 31. 2,377,045 2$ Net income 2017 2,466,105 2,326,180 2016 2015 Net sales 1,306,143 1,266,697 1,252,680 Depreciation and amortization Cost of sales 1,159,962 1,110,348 1,073,500 112,315 198,439 Gross profit 910,894 864,084 831,971 179,851 Selling, general and administrative expenses 13,901 10,244 Deferred income taxes 8,192 59,945 Stock-based compensation Excess tax benefit from employee stock plans Changes in operating assets and liabilities: 60,016 Net licensing income 262,969 256,508 249,721 1,927 56,521 Income from operations 4,515 2,003 4,805 5,098 1,531 (1,099) (2,834) 44,851 Interest income, net (429) (1,041) (19,178) (11,709) 11,286 10,986 Interest expense on note payable to related party (Note 21) Other non-operating expense (321) (572) Accounts receivable 11,672 Inventories (7,873) 266,734 256,898 247,319 Income before income tax (154,419) (58,459) (67,468) Prepaid expenses and other current assets (24,197) 36,710 (40,419) Income tax expense (Note 10) Other assets 46,662 112,315 198,439 179,851 (18,777) (103,296) Net income 7,192 6,541 Accounts payable (19,241) 5,514 (5,452) 4,411 Net income attributable to non-controlling interest 2$ 105,123 2$ 191,898 2$ 174,337 Accrued liabilities 931 (5,948) (2,524) Net income attributable to Columbia Sportswear Company 30,568 Income taxes payable 1,483 11,418 Earnings per share attributable to Columbia Sportswear Company (Note 16): 11,581 24 1.51 2.75 Other liabilities 4,847 (2,017) 2.48 Basic 58,702 Net cash provided by operating activities 4,768 1.49 2.72 2.45 (10,994) Diluted 5,798 Cash flows from investing activities: 2,468 4,966 Weighted average shares outstanding (Note 16): 341,128 275,167 95,105 69,759 69,683 70,162 Basic Purchases of short-term investments Diluted 70,453 70,632 71,064 Sales of short-term investments (130,993) (21,263) (38,208) Capital expenditures Proceeds from sale of property, plant, and equipment 36,282 21,263 64,980 See accompanying notes to consolidated financial statements (53,352) (49,987) (69,917) Net cash used in investing activities 279 97 144 Cash flows from financing activities: (147,784) (49,890) (43,001) Proceeds from credit facilities 3,374 Repayments on credit facilities Proceeds from issuance of common stock under employee stock plans 62,885 53,429 (3,374) (64,825) (51,479) 19,946 13,167 17,442 Tax payments related to restricted stock unit issuances Excess tax benefit from employee stock plans Repurchase of common stock Cash dividends paid Payment of related party note payable (3,662) (5,117) (4,895) 7,873 (35,542) (11) (70,068) (50,909) (48,122) (43,547) (14,236) Net cash used in financing activities Net effect of exchange rate changes on cash Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (84,403) (42,023) (91,245) 12,836 (1,635) (4,647) 121,777 181,619 (43,788) 551,389 369,770 413,558 673,166 $ 551,389 $ 369,770 Supplemental disclosures of cash flow information: 81,045 70,424 87,350 Cash paid during the year for income taxes 685 1,049 1,115 Cash paid during the year for interest on note payable to related party Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet paid 3,188 2,710 4,698 See accompanying notes to consolidated financial statements
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