COLUMBIA SPORTSWEAR COMPANY FINANCIAL STATEMENT ANALYSIS QUESTIONS Note Columbias financial statements show amounts in thousands, except per share amounts The questions and answers here and in the project quiz will follow the same format (In other words, you do NOT need to add 3 zeros to all of your answers ) In what state is Columbia incorporated Where are the companys principal offices Based on Item 1 of the 10 K, briefly describe Columbias business What are Columbias four geographic segments Statements of publically traded companies must be audited, and the audit report, or Report of the Independent Registered Public Accounting Firm, is included as part of the annual report Columbia includes the audit report right before the financial statements Who is the companys auditor To whom is the auditors report addressed According to the first paragraph of the auditors report, who is responsible for the information found in the financial reports What is the auditors responsibility When does Columbias fiscal year end Assets On the balance sheet, what amount does Columbia report for current assets total assets Current assets make up what percentage of total assets What is the largest current asset shown on the balance sheet What is the largest non current asset shown on the balance sheet Columbias Fiscal Year 2018 balance sheet shows Accounts Receivable of $449,382, which represents the amount the company actually expects to collect from its customers What is the companys estimate of the amount of receivables that will NOT be collected (That is, what is the allowance for uncollectible accounts See Note 5) Columbias Fiscal Year 2018 balance sheet shows Inventories of $521,827 According to Note 2, what inventory cost flow method does Columbia use to report inventory cost What depreciation method does Columbia use for financial reporting for its Property, plant, and equipment (See Note 2) The balance sheet reports Property, Plant, and Equipment, net of $291,596 According to Note 7, what is the largest component of PP E How much is the companys accumulated depreciation as of December 31, 2018 Liabilities On the balance sheet, what amount does Columbia report as current liabilities total liabilities Current liabilities make up what percentage of total liabilities What is the largest current liability shown on the balance sheet What is the largest non current liability shown on the balance sheet Is Columbia authorized to issue preferred stock How many shares are authorized have been issued What is the par value of the companys common stock As of December 31, 2018, how many shares of common stock are authorized issued outstanding held in the treasury What is the average issue price per share for the common stock What is Columbia Sportswear Company shareholders equity as of December 31, 2018 How much is total equity What accounts for the difference between Columbia Sportswear Company shareholders equity and total equity What specific name does Columbia use for its income statement How much net sales revenue did Columbia report for 2018 Did this amount increase or decrease from the 2017 amount According to Note 2, when does Columbia recognize sales revenue What is Columbias largest expense reported on the income statement On its income statement, Columbia reports income tax expense of $85,796 for 2018 However, companies often actually pay a different amount for taxes than is reported Sometimes there are differences between accounting income determined using GAAP and taxable income, which is determined using tax rules Sometimes there are differences in the timing of recognition of revenues and expenses Either of these can lead to a companys reporting one amount as tax expense and actually paying a different amount Using information provided at the bottom of the Statement of Cash Flows, how much did Columbia actually pay (in cash) for income taxes in 2018 On the income statement, companies report their net income, and also provide information about net income on a per share basis What was Columbias basic earnings per common share for 2018 Did this amount increase or decrease from the previous year By how much What was Columbias diluted earnings per common share for 2018 Did this amount increase or decrease from last year By how much Did Columbia pay dividends during 2018 If so, how much in total Per share The statement of cash flows shows sources and uses of cash in three categories operating, investing, and financing activities For Columbia, which category(ies) reported net cash provided Which reported net cash used On the statement of cash flows, which investing activity caused the largest cash inflow during 2018 The largest cash outflow On the statement of cash flows, which financing activity caused the largest cash inflow of cash during 2018 The largest cash outflow TO FIND THE 10 K FOR COLUMBIA type in columbia sportswear company 2019 10 k in google, click on the first link for investor columbia for annual reports and open the file called Annual report pursuant to Section 13 and 15(d) for the date 2 21 19 Companies use ratios to express relationships between items on the financial statements these ratios can identify or highlight important financial results For the next questions, you are asked to compute various ratios for Columbia Some of these ratios have already been discussed in class others will be new to you Formulas are provided to help you with these calculations Note that whenever a formula asks for an average amount (such as average assets), add the beginning of the year amount (which is the same as the ending amount last year) and the end of the year amount, then divide the total by 2 Calculate the following ratios for Columbia for 2018, or as of December 31, 2018 30 working capital current assets current liabilities current ratio current assets current liabilities acid test ratio cash short term investments receivables current liabilities 33 accounts receivable turnover net sales average AR 34 days' sales in receivables average AR net sales 365 35 inventory turnover cost of goods sold average inventory return on common net income preferred dividends equity average total equity (see Notes 1 and 2 below) 37 times interest earned net income interest exp income tax exp interest expense debt to equity ratio total liabilities total stockholders' equity gross profit percentage gross profit sales Note 1 Use Net income, notnet income attributable to Columbia Sportswear Company Note 2 Since Columbia has no preferred stock issued, there are no preferred dividends Companies use ratios to express relationships between items on the financial statements these ratios can identify or highlight important financial results For the next questions, you are asked to compute various ratios for Columbia Some of these ratios have already been discussed in class others will be new to you Formulas are provided to help you with these calculations Note that whenever a formula asks for an average amount (such as average assets), add the beginning of the year amount (which is the same as the ending amount last year) and the end of the year amount, then divide the total by 2 Calculate the following ratios for Columbia for 2018, or as of December 31, 2018 30 working capital current assets current liabilities current ratio current assets current liabilities acid test ratio cash short term investments receivables current liabilities 33 accounts receivable turnover net sales average AR 34 days' sales in receivables average AR net sales 365 35 inventory turnover cost of goods sold average inventory return on common net income preferred dividends equity average total equity (see Notes 1 and 2 below) 37 times interest earned net income interest exp income tax exp interest expense debt to equity ratio total liabilities total stockholders' equity gross profit percentage gross profit sales Note 1 Use Net income, notnet income attributable to Columbia Sportswear Company Note 2 Since Columbia has no preferred stock issued, there are no preferred dividends

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COLUMBIA SPORTSWEAR COMPANY FINANCIAL STATEMENT ANALYSIS QUESTIONS Note: Columbias financial statements show amounts in thousands, except per share amounts. The questions and answers here and

COLUMBIA SPORTSWEAR COMPANY FINANCIAL STATEMENT ANALYSIS QUESTIONS

Note: Columbias financial statements show amounts in thousands, except per share amounts. The questions and answers here and in the project quiz will follow the same format. (In other words, you do NOT need to add 3 zeros to all of your answers.)

In what state is Columbia incorporated? Where are the companys principal offices?
Based on Item 1 of the 10-K, briefly describe Columbias business.
What are Columbias four geographic segments?
Statements of publically traded companies must be audited, and the audit report, or Report of the Independent Registered Public Accounting Firm, is included as part of the annual report. Columbia includes the audit report right before the financial statements. Who is the companys auditor? To whom is the auditors report addressed?
According to the first paragraph of the auditors report, who is responsible for the information found in the financial reports? What is the auditors responsibility?
When does Columbias fiscal year end?
Assets: On the balance sheet, what amount does Columbia report for
1. current assets?
1. total assets?
Current assets make up what percentage of total assets?
What is the largest current asset shown on the balance sheet?

What is the largest non-current asset shown on the balance sheet?

Columbias Fiscal Year 2018 balance sheet shows Accounts Receivable of $449,382, which represents the amount the company actually expects to collect from its customers. What is the companys estimate of the amount of receivables that will NOT be collected? (That is, what is the allowance for uncollectible accounts? See Note 5)
Columbias Fiscal Year 2018 balance sheet shows Inventories of $521,827. According to Note 2, what inventory cost flow method does Columbia use to report inventory cost?
What depreciation method does Columbia use for financial reporting for its Property, plant, and equipment? (See Note 2)
The balance sheet reports Property, Plant, and Equipment, net of $291,596. According to Note 7, what is the largest component of PP&E?

How much is the companys accumulated depreciation as of December 31, 2018?

Liabilities: On the balance sheet, what amount does Columbia report as
1. current liabilities?
1. total liabilities?
Current liabilities make up what percentage of total liabilities?
What is the largest current liability shown on the balance sheet?

What is the largest non-current liability shown on the balance sheet?

Is Columbia authorized to issue preferred stock? How many shares are authorized? have been issued?
What is the par value of the companys common stock?
As of December 31, 2018, how many shares of common stock are
1. authorized?
1. issued?
1. outstanding?
1. held in the treasury?
What is the average issue price per share for the common stock?
What is Columbia Sportswear Company shareholders equity as of December 31, 2018? How much is total equity?

What accounts for the difference between Columbia Sportswear Company shareholders equity and total equity?

What specific name does Columbia use for its income statement?
How much net sales revenue did Columbia report for 2018? Did this amount increase or decrease from the 2017 amount?
According to Note 2, when does Columbia recognize sales revenue?
What is Columbias largest expense reported on the income statement?
On its income statement, Columbia reports income tax expense of $85,796 for 2018. However, companies often actually pay a different amount for taxes than is reported. Sometimes there are differences between accounting income determined using GAAP and taxable income, which is determined using tax rules. Sometimes there are differences in the timing of recognition of revenues and expenses. Either of these can lead to a companys reporting one amount as tax expense and actually paying a different amount.

Using information provided at the bottom of the Statement of Cash Flows, how much did Columbia actually pay (in cash) for income taxes in 2018?

On the income statement, companies report their net income, and also provide information about net income on a per share basis. What was Columbias basic earnings per common share for 2018? Did this amount increase or decrease from the previous year? By how much?

What was Columbias diluted earnings per common share for 2018? Did this amount increase or decrease from last year? By how much?

Did Columbia pay dividends during 2018? If so, how much in total? Per share?
The statement of cash flows shows sources and uses of cash in three categories: operating, investing, and financing activities. For Columbia, which category(ies) reported net cash provided? Which reported net cash used?
On the statement of cash flows, which investing activity caused the largest cash inflow during 2018? The largest cash outflow?
On the statement of cash flows, which financing activity caused the largest cash inflow of cash during 2018? The largest cash outflow?

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TO FIND THE 10-K FOR COLUMBIA:

type in columbia sportswear company 2019 10-k in google, click on the first link for investor.columbia for annual reports and open the file called Annual report pursuant to Section 13 and 15(d) for the date 2/21/19

Companies use ratios to express relationships between items on the financial statements; these ratios can identify or highlight important financial results. For the next questions, you are asked to compute various ratios for Columbia. Some of these ratios have already been discussed in class; others will be new to you. Formulas are provided to help you with these calculations. Note that whenever a formula asks for an average amount (such as average assets), add the beginning of the year amount (which is the same as the ending amount last year) and the end of the year amount, then divide the total by 2. Calculate the following ratios for Columbia for 2018, or as of December 31, 2018: 30. working capital current assets - current liabilities current ratio current assets current liabilities acid test ratio cash + short-term investments + receivables current liabilities 33. accounts receivable turnover net sales average AR 34. days' sales in receivables average AR net sales/365 35. inventory turnover cost of goods sold average inventory return on common net income - preferred dividends equity average total equity (see Notes 1 and 2 below) 37. #times interest earned net income + interest exp + income tax exp interest expense debt to equity ratio total liabilities total stockholders' equity gross profit percentage gross profit sales Note 1: Use Net income, notnet income attributable to Columbia Sportswear Company Note 2: Since Columbia has no preferred stock issued, there are no preferred dividends. Companies use ratios to express relationships between items on the financial statements; these ratios can identify or highlight important financial results. For the next questions, you are asked to compute various ratios for Columbia. Some of these ratios have already been discussed in class; others will be new to you. Formulas are provided to help you with these calculations. Note that whenever a formula asks for an average amount (such as average assets), add the beginning of the year amount (which is the same as the ending amount last year) and the end of the year amount, then divide the total by 2. Calculate the following ratios for Columbia for 2018, or as of December 31, 2018: 30. working capital current assets - current liabilities current ratio current assets current liabilities acid test ratio cash + short-term investments + receivables current liabilities 33. accounts receivable turnover net sales average AR 34. days' sales in receivables average AR net sales/365 35. inventory turnover cost of goods sold average inventory return on common net income - preferred dividends equity average total equity (see Notes 1 and 2 below) 37. #times interest earned net income + interest exp + income tax exp interest expense debt to equity ratio total liabilities total stockholders' equity gross profit percentage gross profit sales Note 1: Use Net income, notnet income attributable to Columbia Sportswear Company Note 2: Since Columbia has no preferred stock issued, there are no preferred dividends