Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A, and

Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A, and Under Armour, Inc's financial can be found in Appendix B at the end of this book.

Columbia Statements are here:

http://www.chegg.com/homework-help/questions-and-answers/financial-statements-columbia-sportswear-company-presented-appendix-b-based-information-fi-q20398389

Columbia annual reports are here: http://investor.columbia.com/annuals.cfm

Under Armour Statements are here: Keep scrolling you will see the info needed. https://www.sec.gov/Archives/edgar/data/1336917/000133691715000006/ua-20141231x10k.htm

Under Armour annual reports are here: http://www.annualreports.com/Company/under-armour-inc

Required

a) Compare the dollar value of inventory carried on the balance sheet by each company in 2014 and 2013. Which company carries the greatest dollar amount of inventory? Compare the ratio of inventory divided by total assets for each company for 2014 and 2013. Which company carries the largest relative investment in inventory?

b) Calculate the inventory turnover and days sales in inventory for 2014 and 2013 for each company. Inventory at December 31, 2012, for Columbia and Under Armour, Inc. was $363.3 million and $319.3 million, respectively.

c) Which company appears to be doing the better job of managing its investment in inventory?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions