Go to www.columbia.com to find Columbia Sportswear s home page. Under the About Us menu near the
Question:
Answer the following questions:
1. Name one item on Columbia Sportswear’s balance sheet that most likely represents unexpired (prepaid) costs. Name one item that most likely represents the accrual of unrecorded expenses.
2. Does Columbia Sportswear prepare a single- or multiple-step income statement? How can you tell?
3. Determine Columbia Sportswear’s gross profit percentage for the past 2 years. Is the change favorable? What does Columbia Sportswear’s management say about the change? If nothing was said, why do you think management chose not to comment? How do you think management determines the reason that gross profit changed, given the condensed nature of the income statement?
4. Calculate Columbia Sportswear’s current ratio for the past 2 years. Did this ratio improve or decline? Does management offer any comment about any particular problems that could have affected this ratio? Should management be concerned about changes in the current ratio?
5. Where can you find evidence in Columbia Sportswear’s annual report that the financial statements were prepared using U.S. GAAP?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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