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Concept Introduction:
Annual report:
The annual report of the company includes the financial and other operating descriptions about the business for a particular year.
Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement,
Requirement-a:
To Indicate:
The amount of Assets, Liabilities and
Answer to Problem 74.3C
The amount of Assets, Liabilities and Stockholder’s equity of Under Armour Inc. and Columbia Sportswear for the year ended Dec. 31, 2016 are as follows:
| Year 2016 | Under Armour Inc. | Columbia Sportswear |
| $ in Thousands | ||
| Assets | 3,644,331 | 2,013,894 |
| Liabilities | 1,613,431 | 432,383 |
| Equity | 2,030,900 | 1,581,511 |
Explanation of Solution
The amount of Assets, Liabilities and Stockholder’s equity of Under Armour Inc. and Columbia Sportswear for the year ended Dec. 31, 2016 can be found from the Consolidated balance Sheet as follows:
| Year 2016 | Under Armour Inc. | Columbia Sportswear |
| $ in Thousands | ||
| Assets | 3,644,331 | 2,013,894 |
| Liabilities | 1,613,431 | 432,383 |
| Equity | 2,030,900 | 1,581,511 |
Concept Introduction:
Annual report:
The annual report of the company includes the financial and other operating descriptions about the business for a particular year.
Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.
Requirement-b:
To Indicate:
The amount of Current Assets and Current Liabilities of Under Armour Inc. and Columbia Sportswear for the year ended Dec. 31, 2016.
Answer to Problem 74.3C
The amounts of Current Assets and Current Liabilities of Under Armour Inc. and Columbia Sportswear for the year ended Dec. 31, 2016 are as follows:
| Year 2016 | Under Armour Inc. | Columbia Sportswear |
| $ in Thousands | ||
| Current Assets | 1,965,153 | 1,412,023 |
| Current Liabilities | 685,816 | 362,851 |
Explanation of Solution
The amount of Current Assets and Current Liabilities of Under Armour Inc. and Columbia Sportswear for the year ended Dec. 31, 2016 can be found from the Consolidated balance Sheet as follows:
| Year 2016 | Under Armour Inc. | Columbia Sportswear |
| $ in Thousands | ||
| Current Assets | 1,965,153 | 1,412,023 |
| Current Liabilities | 685,816 | 362,851 |
Concept Introduction:
Annual report:
The annual report of the company includes the financial and other operating descriptions about the business for a particular year.
Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.
Requirement-c:
To Indicate:
The liquidity of each company.
Answer to Problem 74.3C
The liquidity of each company is as follows:
| Year 2016 | Under Armour Inc. | Columbia Sportswear |
| 2.87 | 3.89 |
Hence, Columbia Sportswear is more liquid.
Explanation of Solution
The liquidity of each company is assessed using the current ratio as follows:
| Year 2016 | Under Armour Inc. | Columbia Sportswear |
| $ in Thousands | ||
| Current Assets (A) | 1,965,153 | 1,412,023 |
| Current Liabilities (B) | 685,816 | 362,851 |
| Current Ratio (A/B) | 2.87 | 3.89 |
Hence, Columbia Sportswear is more liquid.
Concept Introduction:
Annual report:
The annual report of the company includes the financial and other operating descriptions about the business for a particular year.
Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.
Requirement-d:
To Indicate:
The similarity between the companies.
Answer to Problem 74.3C
Both the companies have similar business and cash flow patterns.
Explanation of Solution
The liquidity of each company is assessed using the current ratio as follows:
| Year 2016 | Under Armour Inc. | Columbia Sportswear |
| $ in Thousands | ||
| Current Assets (A) | 1,965,153 | 1,412,023 |
| Current Liabilities (B) | 685,816 | 362,851 |
| Current Ratio (A/B) | 2.87 | 3.89 |
Both the companies have similar business and cash flow patterns but Columbia Sportswear is more liquid.
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Chapter 1 Solutions
Cornerstones of Financial Accounting
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