a.compute free cash flow for the company for the most recent year provided.

b. What conclusions concerning the management of cash can be drawn from these data?

COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2015 2014 2016 Net sales Cost of sales Gross profit Selling, general and administrative expenses. Net licensing income.. Income from operations Interest income, net... Interest expense on note payable to related party (Note 22)... Other non-operating expense Income before income tax. Income tax expense (Note 10) Net income .. Net income attributable to non-controlling interest .. Net income attributable to Columbia Sportswear Company Earnings per share attributable to Columbia Sportswear Company (Note 16): Basic.. Diluted Weighted average shares outstanding (Note 16): Basic.. Diluted .. $ 2,377,045 $ 2,326,180 $2,100,590 1,266,697 1,252,680 1,145,639 1,110,348 1,073,500 954,951 864,084 831,971 763,063 10,244 8,192 6,956 256,508 249,721 198,844 2,003 1,531 1,004 (1,041) (1,099) (1,053) (572) (2,834) (274) 256,898 247,319 198,521 (58,459) (67,468) (56,662) 198,439 179,851 141,859 6,541 5,514 4,686 $ 191,898 $ 174,337 $ 137,173 $ 2.75 $ 2.48 $ 1.97 2.72 2.45 1.94 69,683 70,632 70,162 71,064 69,807 70,681 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, 2016 2015 2014 Net income... $ 198,439 $ 179,851 $ 141,859 Other comprehensive loss: Unrealized holding gains (losses) on available-for-sale securities (net of tax effects of $, ($3), and ($5), respectively)...... (2) (6) 10 Unrealized gains (losses) on derivative transactions (net of tax effects of ($1,922), ($849) and ($1,507), respectively)... 843 (2,908) 7,751 Foreign currency translation adjustments (net of tax effects of ($347), ($760) and $1,023, respectively)..... (4,485) (34,887) (27,789) Other comprehensive loss... (3,644) (37,801) (20,028) Comprehensive income.. 194,795 142,050 121,831 Comprehensive income attributable to non-controlling interest. 4,678 4,382 4,185 Comprehensive income attributable to Columbia Sportswear Company.... $ 190,117 $ 137,668 $ 117,646 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31, 2016 2015 ASSETS $ 551,389 $ 369,770 472 629 333,678 371,953 487,997 473,637 38,487 33,400 1,412,023 1,249,389 279,650 291,687 133,438 138,584 68,594 68,594 92,494 76,181 27,695 21,718 $ 2,013,894 $ 1,846,153 $ $ Current Assets: Cash and cash equivalents. Short-term investments Accounts receivable, net (Note 5). Inventories. Prepaid expenses and other current assets. Total current assets... Property, plant, and equipment, net (Note 6) Intangible assets, net (Note 7) Goodwill (Note 7).... Deferred income taxes (Note 10)... Other non-current assets... Total assets LIABILITIES AND EQUITY Current Liabilities: Short-term borrowings (Note 8) Accounts payable. Accrued liabilities (Note 9). Income taxes payable (Note 10) Total current liabilities. Note payable to related party (Note 22) Other long-term liabilities (Notes 11, 12) Income taxes payable (Note 10) Deferred income taxes (Note 10) Total liabilities ..... Commitments and contingencies (Note 13) Shareholders' Equity: Preferred stock; 10,000 shares authorized; none issued and outstanding Common stock (no par value): 250,000 shares authorized; 69,873 and 69.277 issued and outstanding (Note 14).. Retained earnings .... Accumulated other comprehensive loss (Note 17). Total Columbia Sportswear Company shareholders' equity Non-controlling interest (Note 4). Total equity. Total liabilities and equity 215,048 142,158 5,645 362,851 14.053 42,622 12,710 147 432,383 1,940 217,230 141,862 5,038 366,070 15,030 40,172 8,839 229 430,340 53,801 34,776 1,529,636 1,385,860 (22,617) (20,836) 1,560.820 1.399,800 20,691 16,013 1,581,511 1,415,813 $ 2,013,894 $ 1,846,153 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2015 2016 2014 $ 198,439 $ 179,851 $ 141,859 60,016 4,805 (19,178) 10,986 56,521 5,098 (11,709) 11,672 (7,873) 54,017 481 (6,978) 11,120 (4,927) 36,710 (18,777) (5,452) (5,948) 1,483 4,847 4,768 2,468 275,167 (40,419) (103,296) 4,411 (2,524) 11,418 (2,017) (10,994) 4,966 95,105 (31,478) (62,086) (4,869) 4,291 41,941 35,051 1,166 6,195 185,783 Cash flows from operating activities: Net income. Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Loss on disposal or impairment of property, plant, and equipment. . Deferred income taxes. Stock-based compensation. Excess tax benefit from employee stock plans. Changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Other assets.. Accounts payable Accrued liabilities. Income taxes payable Other liabilities. Net cash provided by operating activities. Cash flows from investing activities: Acquisition of business, net of cash acquired Purchases of short-term investments Sales of short-term investments. Capital expenditures.. Proceeds from sale of property, plant, and equipment. Net cash used in investing activities ... Cash flows from financing activities: Proceeds from credit facilities .. Repayments on credit facilities Proceeds from issuance of common stock under employee stock plans .... Tax payments related to restricted stock unit issuances. Excess tax benefit from employee stock plans Repurchase of common stock Cash dividends paid.. Proceeds from note payable to related party Net cash used in financing activities.. Net effect of exchange rate changes on cash Net increase (decrease) in cash and cash equivalents.. Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year... Supplemental disclosures of cash flow information: Cash paid during the year for income taxes.. Cash paid during the year for interest on note payable to related party Supplemental disclosures of non-cash investing activities: Capital expenditures incurred but not yet paid (21,263) 21,263 (49,987) 97 (49,890) (38,208) 64,980 (69,917) 144 (43,001) (188,467) (48,243) 112,895 (60,283) 71 (184,027) 62,885 (64,825) 13,167 (5,117) 53,429 (51,479) 17,442 (4,895) 7,873 (70,068) (43,547) (11) (48,122) 52,356 (52,205) 22,277 (3,141) 4,927 (15,000) (39,836) 16,072 (14,550) (11,137) (23,931) 437,489 413,558 (42,023) (1,635) 181,619 369,770 551,389 $ (91,245) (4,647) (43,788) 413,558 369,770 $ $ $ $ 70,424 1,049 87,350 $ 1,115 53,958 838 2,710 4,698 7,196 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders' Equity Common Stock Accumulated Other Non- Shares Retained Comprehensive Controlling Outstanding Amount Earnings Income (Loss) Interest Total 69,190 $ 52,325 $1,157,733 $ 35,360 $ 7,446 $ 1,252,864 137,173 4,686 141,859 10 10 | | | | 7,751 (27,288) (501) 7,751 (27,789) (39,836) (39,836) 1,059 TI 19,136 5,119 11,120 (15,000) 19,136 5,119 11,120 (15,000) (421) 69,828 72,700 15,833 1,255,070 174,337 11,631 5,514 1,355,234 179,851 - - (6) (6) - BALANCE, JANUARY 1, 2014 Net income Other comprehensive income (loss): Unrealized holding gains on available-for-sale securities, net Unrealized holding gains on derivative transactions, net Foreign currency translation adjustment, net .. Cash dividends ($0.57 per share). Issuance of common stock under employee stock plans, net ..... Tax adjustment from stock plans . . Stock-based compensation expense. Repurchase of common stock BALANCE, DECEMBER 31, 2014 Net income... Other comprehensive loss: Unrealized holding losses on available-for- sale securities, net.. Unrealized holding losses on derivative transactions, net Foreign currency translation adjustment, net .. Cash dividends ($0.62 per share). Issuance of common stock under employee stock plans, net Tax adjustment from stock plans.. Stock-based compensation expense. Repurchase of common stock. BALANCE, DECEMBER 31, 2015 Net income Other comprehensive income (loss): Unrealized holding losses on available-for- sale securities, net. Unrealized holding gains on derivative transactions, net. Foreign currency translation adjustment, net .. Cash dividends ($0.69 per share). Issuance of common stock under employee stock plans, net Stock-based compensation expense. Repurchase of common stock. BALANCE, DECEMBER 31, 2016 III (2.908) (33,755) (1,132) (2,908) (34,887) (43,547) (43,547) 835 12,547 7,925 11,672 (70,068) 34,776 12,547 7,925 11,672 (70,068) (1,386) 69,277 (20,836) - 1,385,860 191,898 16,013 6,541 1,415,813 198,439 - - (2) (2) 157 843 11 3 686 (2,465) (2,020) (4,485) (48,122) (48,122) 596 8,050 10,986 (11) 8,050 10,986 (11) 69,873 $ 53,801 $1,529,636 $ (22,617) $ 20,691 $ 1,581,511 See accompanying notes to consolidated financial statements