Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download

Question:

Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com.
Required:
1. What amounts do Under Armour and Columbia report for inventories in their consolidated balance sheets at December 2016 and December 2015?
2. Do Under Armour and Columbia use the same method to value their inventories?
3. What amount does Under Armour report for cost of goods sold for the years ending December 2016, 2015, and 2014? What amount does Columbia report for cost of goods sold for the years ending December 2016, 2015, and 2014?
4. Compute the gross profit and s for fiscal year ending December
2016. What do these ratios tell you about the success of each company in managing and controlling their inventory?
5. Do Under Armour and Columbia use the lower of cost or market method to account for their inventories? By what amount have they written inventories down in the fiscal year ending December 2016?
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...