Accrued liabilities arise from ordinary operations and provide interest-free financing. Using Nike and Under Armour common-size balance sheets:

• Are operating liabilities large for the companies?
• Compare common-size amounts.
• What proportion of total liabilities are operating?
• What are the companies main operating liabilities?
• Are there substantial contingencies?
• Read the footnote and determine whether the company has recorded a liability on its balance sheet for these contingencies.