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. Under Armour (Note 6, under the paragraphs marked ''Other'') has a note discussing contingencies. What contingencies does the note disclose? Do you think any of these contingencies are included in the income statement or on the balance sheet? Why or why not?
2. Columbia has a note providing detail on its accrued liabilities. Locate the note and provide the amount of its product warranties liability as of December 31, 2016.
3. Calculate Under Armour's and Columbia's current ratios for 2015 and 2016. (Note: Round answers to two decimal places.)
4. Compare Under Armour's and Columbia's short-term liquidity based on the values and trends of the current ratios.
5. Calculate Under Armour's and Columbia's quick ratios and cash ratios for 2015 and 2016.
6. Compare the values and trends of these ratios when evaluating Under Armour's and Columbia's short-term liquidity.
7. Calculate Under Armour's and Columbia's operating cash flows ratios for 2015 and 2016.
8. Compare Under Armour's and Columbia's short-term liquidity based on the values and trends of the operating cash flows ratio.