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Focus on Analysis Under Armour, Inc.
LO 1, 3, 5, 7, 8
(Learning Objectives 1.3.5.7.8: Measure the cost of plant assets: explain plant asset activity; apply GAAP for intangible assets, explain an asset impairment analyze
Requirements
1. On the statement of
2. Which depreciation method does under Armour use? Over what range of useful lives does under Armour
3. Review the information in Note 3 (Property and Equipment, Net). List the categories of Under Armour's property and equipment as of December 31, 2016, and December 31.2015. How much depreciation expense is included in the calculation of net income for these two fiscal years? Does it appear that Under Armour’s properly and equipment was proportionately newer or older at the end of 2018 (vs. 2015)? Explain your answer. (Challenge)
4. Examine Note 4 (
5. Using DuPent Analysis, calculate under Armour's rate of return on total assets for fiscal 2016 and fiscal 2015. Total assets at December 31, 2014 (the end of its 2014 fiscal year) were $2,095 million. Did the company perform better or worse in 2016 than in 2015? Use millions for ratios.
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Chapter 7 Solutions
Financial Accounting, Student Value Edition (12th Edition)
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