Chapter 10, Problem 1FA

Financial Analysis

Purpose: To help familiarize you with the financial reporting of a real company in order to further your understanding of the chapter material.

This case continues our examination of Columbia Sportswear. Here we study the stockholders' equity of Columbia Sportswear, which you will see titled as Shareholders’ Equity. Refer to the Columbia Sportswear financial statements in Appendix A. Look for the consolidated balance sheets and the consolidated statements of shareholders’ equity.

Requirements

1. 1. What was the balance of total Columbia Sportswear Company shareholders’ equity at December 31, 2016? What was the balance of total Columbia Sportswear Company shareholders’ equity at December 31, 2015? Did the amount of ending total Columbia Sportswear Company shareholders’ equity increase or decrease? What seems to be the main reason for the change in total Columbia Sportswear Company shareholders’ equity? What is the largest component of total Columbia Sportswear Company shareholders’ equity?
2. 2. Does Columbia Sportswear have any preferred stock authorized? If so, can you determine the par value of the preferred stock? How many shares of preferred stock are issued and outstanding?
3. 3. What is the par value of the common stock? Does Columbia Sportswear have any additional paid-in capital? Why or why not? How many shares of common stock are authorized? How many shares are issued and outstanding at the end of 2016 and 2015?
4. 4. Look at the consolidated statements of shareholders’ equity. Did Columbia Sportswear declare any dividends in 2016? If so, how much were the total dividends and what was the dividend per share? Did the amount of dividends per share increase or decrease from 2015 to 2016? Can you determine whether Columbia Sportswear has been repurchasing shares of its common stock? If so, has the amount of share repurchases been increasing or decreasing? What is the effect on total stockholders’ equity?