The fi nancial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Assume Columbia’s weighted-average number of shares outstanding was 227,514,000, and VF’s was 56,997,000. LO8 Instructions

(a) For each company, calculate the following values for 2014.

(1) Working capital. (3) Debt to assets ratio.

(2) Current ratio. (4) Free cash flow.

(Hint: When calculating free cash flow, do not consider business acquisitions to be part of capital expenditures.)

(b) Based on your findings above, discuss the relative liquidity and solvency of the two companies.