Retrieve the 2016 Under Armour financial statements at www.sec.gov by clicking on Filings and then searching for “Under Armour” under Company Filings. When you see the list of filings for the company, select the Form 10-K for 2016. Be sure to retrieve the 2016 financial statements, not another year. These financial statements report a number of liabilities.

Requirements

1. The current liability section of Under Armour’s Consolidated Balance Sheet as of December 31, 2016, lists four different liabilities. List them and give a brief description of each one.

2. For 2016, calculate accounts payable turnover, both as a ratio and in number of days. Describe what this ratio means. Also compute the following other ratios for 2016 (if you have already computed them as part of your work in previous chapters, refer to them): (1) current ratio, (2) quick ratio, (3) days’ sales outstanding, and (4) days’ inventory outstanding. How would you combine the information in these ratios to assess Under Armour’s current debtpaying ability?

3. Refer to the note entitled “Commitments and Contingencies.” Describe the contents of the “Other” subsection in the note. Are any of these items included in the liabilities recorded in either the current or long-term section of the balance sheet? Why or why not?

4. Now download Under Armour’s most recent financial statements from www.sec.gov. What has happened to Under Armour’s accounts payable turnover since the end of 2016?