Analyzing Financial Statements Using the Internet Go to http://www.columbiasportswear.com to find Columbia Sportswear's home page. Select Who We Are then Investor Info from the menu. Then select Annual Reports and click on the most recent annual report. Answer the following questions: tell? 1. Name one item on Columbia Sportswear's balance sheet that most likely represents unexpired (prepaid) costs. Name one item that most likely represents the accrual of unrecorded expenses. 2. Does Columbia Sportswear prepare a single- or multiple-step income statement? How can you 3. Determine Columbia Sportswear's gross profit percentage for the past 2 years. Is the change favorable? What does Columbia Sportswear's management say about the change? (Hint: Look in Management's Discussion and Analysis.) If nothing was said, why do you think management chose not to comment? How do you think management determines the reason that gross profit changed, given the condensed nature of the income statement? 4. Calculate Columbia Sportswear's current ratio for the past 2 years. Did this ratio improve or decline? Does management offer any comment about any particular problems that could have affected this ratio? Should management be concerned about changes in the current ratio? 5. Where can you find evidence in Columbia Sportswear's annual report that the financial state- ments were prepared using GAAP?