Apply the accounting equation; evaluate business operations) This and similar cases in each chapter are based on the 2016 consolidated financial statements of Under Armour, Inc. You can 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.

Requirements
1. Go online and do some research on Under Armour and its industry. Use one or more popular websites such as Yahoo! Finance or Google Finance. Write a paragraph (about 100 words) that describes the industry, some current developments, and a projection for where the industry is headed.

2. Read Note 1—(Description of Business) of Under Armour’s annual report. What do you learn here and why is it important?

3. Name two of Under Armour’s competitors. Why is this information important in evaluating Under Armour’s financial performance?

4. Write Under Armour’s accounting equation as of December 31, 2016 (express all items in millions and round to the nearest $1 million). Does Under Armour’s financial condition look strong or weak? How can you tell?

5. What was the result of Under Armour’s operations during 2016? Identify both the name and the dollar amount of the result of operations for 2016. Does an increase (or decrease) signal good news or bad news for the company and its stockholders?

6. Examine retained earnings in the Consolidated Statements of Stockholders’ Equity. What caused retained earnings to increase during 2016?

7. Which statement reports cash and cash equivalents as part of Under Armour’s financial position? Which statement tells why cash and cash equivalents increased (or decreased) during the year? Which activities caused the company’s cash and cash equivalents to change during 2016, and how much did each activity provide or use?