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. Suppose you are an investor considering buying Under Armour, Inc.’s, common stock. Answer the following questions. Show amounts in millions.

Requirements

1. Which was larger for Under Armour during 2016: (1) net revenues or (2) cash collected from customers? Why? Show computation. Assume all revenues are on credit.

2. Investors are vitally interested in a company’s sales and profits and its trends of sales (net revenues) and profits over time. Consider Under Armour’s net revenues and net income (net loss) during the period from 2014 through 2016. Compute the percentage increase or decrease in net revenues and also in net income (net loss) from 2014 to 2016. Which item grew faster during this two-year period—net revenues or net income (net loss)? Can you offer a possible explanation for these changes?