Columbia Sportswear Company reported the following in recent balance sheets (amounts in millions). (in millions) September December 30, 2016 31, 2015 Assets Current Assets Cash $ 383 $ 460 Accounts Receivable 925 462 Inventories 1,125 680 Prepaid Rent 62 43 Total Current Assets 2,495 1,565 Software 337 176 Equipment 1,148 578 Total Assets $3,988 $2,319 Liabilities and Shareholders' Equity Liabilities Current Liabilities Accounts Payable $ 632 $ 536 Notes Payable (short-term) @ 2 Income Taxes Payable 60 5 Total Current Liabilities 692 543 Notes Payable (long-term) 94 Total Liabilities 833 637 Stockholders' Equity Common Stock 132 46 Retained Earnings 3,015 1,636 Total Shareholders' Equity 3, 147 1,682 Total Liabilities and Shareholders' Equity $3,988 $2,319 141 Required: 1. Calculate the current ratio at September 30, 2016 and December 31, 2015 2-a. Did the company's current ratio increase or decrease? 2-b. What does this imply about the company's ability to pay its current liabilities as they come due? 3-a. What would Cumberland's current ratio have been on September 30, 2016, if the company were to have paid down $10 of its Accounts Payable? 3-b. Does paying down Accounts Payable in this case increase or decrease the current ratio? 4. Are the company's total assets financed primarily by liabilities or stockholders' equity at September 30, 2016? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 3A Reg 38 Req 4 Calculate the current ratio at September 30, 2016 and December 31, 2015. (Enter your answers in millions (ie, 10,000,000 should be entered as 10).) Current Ratio September 30, 2016 December 31, 2015 Numerator Denominator Req 2A > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Req 3A Req 3B Reg 4 Did the company's current ratio increase or decrease? Increase Decrease Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Req 3A Req 3B Reg 4 What does this imply about the company's ability to pay its current liabilities as they come due? Increased ability to pay current liabilities. Decreased ability to pay current liabilities. Req 1 Reg 2A Reg 28 Req 3A Reg 38 Reg 4 What would Cumberland's current ratio have been on September 30, 2016, if the company were to have paid down $10 of its Accounts Payable? (Enter your answers in millions (ie., 10,000,000 should be entered as 10).) Current Ratio Numerator Denominator Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3A Req 3B Req 4 Does paying down Accounts Payable in this case increase or decrease the current ratio? Increases the current ratio. Decreases the current ratio Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req Reg 3B Reg 4 Are the company's total assets financed primarily by liabilities or stockholders' equity at September 30, 20167 Liabilities Stockholders' Equity