Comparative Analysis Problem: Columbia Sportswear Company vs. VF Corporation CT5.2 The financial statements of Columbia Sportswear Company are presented in Arpendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions a. Based on the information contained in these financial statements, determine the following values for each company, 1. Profit margin for 2016. (For VF, use "Net Sales.") 2. Gross profit for 2016. 3. Gross profit rate for 2016, 4. Operating income for 2016. 5. Percentage change in operating Income from 2015 to 2016. (For Columbia, use Income from operations.) b. What conclusions concerning the relativ nrofitabilite of the fun om CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2015 2014 Net sales $ 2.377,045 $ 2.326,180 S 2.100.590 Cost of sales 1.266,697 1.252.680 1.145.639 Gross profit 1,110,348 1.073.500 954.951 Selling, geoeral and administrative expenses 864.084 831.971 763.063 Net licensing income 10,244 8.192 6,956 Income from operations 256.SOS 249.721 198,844 Interest income, net 2003 1.531 1.004 Interest expense on note payable to related party (Note 22) (1.041) (1,099) (1.053) Other non-operating expense (572) 2.834) (274) Income before income tax. 256,898 247,319 198.521 Income Lx expense (Note 10) (58.459 (67.468) 56,6623 Net income 198,439 179.851 141.859 Net income attributable to co-controlling interest 6541 51514 4686 Net income tributable to Columbia Sportswear Company ....... 19138983 17407 S 137.173 Faming per share attributable to Columbia Sportswear Company Note Basic 2755 2,48 5 1.97 Diluted 2.72 245 1.94 Weighted average shares outstanding (Note to KOA 162 VE CORPORATION Consolidated Balance Sheets December 2016 2015 In thousands scept share amounts 1.227.862 S 944,423 1,197,678 1.569,325 298.233 RI 4,293,098 939,650 1.839.698 1.736,959 929.882 1.289.962 1.555.360 284.215 89.176 4.163.136 945.491 1.948.611 1.788.407 583.866 210,031 9.639,542 9.739.287 $ ASSETS Current assets Cash and equivalents Accounts receivable. less allowance for doubtful accounts of $21.131 in 2016 and $23.275 in 2015 Inventories Other current assets Current assets of discontinued operations Total current assets Property, plant and equipment Intangible assets Goodwill Other assets Other assets of discontinued operations Total assets s LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term borrowings Current portion of long-term debt Accounts payable Accrued liabilities Current liabilities of discontinued operations Total current liabilities Long-term debt Other liabilities + Other liabilities of discontinued operations Commitments and contingencies Total liabilities Stockholders equity Preferred Stock. par value S1: shares authorized. 25.000.000: to shares outstanding in 2016 and 2015 Common Stock, stated value $0.25: Shares authorized, 1.200.000,000; 414.012.954 shares outstanding in 2016 and 426,614.274 shares outstanding in 2015 Additional paid-in capital Accumulated other comprehensive loss Retained eamings Total stockholders' equity Total liabilities and stockholders' equity 26,029 S 253.689 664,614 841,038 449.590 3.351 680,606 782.148 26.018 1.941.713 1.401,820 900.256 10.915 1.785,400 2.039.180 973.786 4.798,366 4.254,704 103,503 3.333.423 (1.041.463) 2.545.458 4.940.921 9.739.2875 9 106,654 3.192.675 (1.043.222) 3.128.731 5.384.838 9.639.542 s COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2016 2015 2014 $ 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 .... 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): Basie. Diluted Weighted average shares outstanding (Note 16): ... 2.75 S 2.48 2.45 1.97 1.94 2.72 Basic... Diluted 69,683 70.632 70,162 71.064 69,807 70.681