Current Attempt in Progress The financial statements of Columbia Sportswear Company are presented in Appendix B. Click here to view Appendix B. Financial statements of Under Armour, Inc. are presented in Appendix C. Click here to view Appendix C. Based on the information contained in these financial statements, identify the other account ordinarily involved when: a. Accounts Receivable is increased. b. Notes Payable is decreased. c. Equipment is increased. d. Prepaid Insurance is increased. Save for Later Attempts: 0 of 1 used Submit Answer Appendix B Specimen Financial Statements: Columbia Sportswear Company Columbia Sportswear Company is a leader in outdoor sportswear. The following are Columbia's financial statements as presented in its 2018 annual report. Columbia's complete annual report, including notes to the financial statements, is available at the company's website." COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2018 2017 2016 Net sales Cost of sales $2,802,326 $2,466,105 $2,377,045 1,415,978 1,306,143 1,266,697 Gross profit 1,386,348 1,159,962 1,110,348 Selling, general and administrative 1,051,152 910,894 864,084 expenses Net licensing income 15,786 13,901 10,244 Income from operations 350,982 262,969 256,508 Interest income, net 9,876 4,515 2,003 Interest expense on note payable to related party (Note 22) (429) (1,041) Other non-operating expense (141) (321) (572) Income before income tax 360,717 266,734 256,898 Income tax expense (Note 11) (85,769)) (154,419) (58,459) Net income 274,948 112,315 198,439 Net income attributable to non- controlling interest 6,692 7,192 6,541 Net income attributable to Columbia $ 268,256 $ 105,123 $ 191,898 Sportswear Company Earnings per share attributable to Columbia Sportswear Company (Note 17): Basic Diluted Weighted average shares outstanding (Note 17): Basic Diluted $ 3.85 3.81 1.51 $ 2.75 1.49 2.72 69,614 69,759 69,683 70,401 70,453 70,632 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, 2018 2017 2016 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, Net income Other comprehensive income (loss) Unrealized holding losses on available- for-sale securities (net of tax effects of $17, $0, and $0, respectively) Unrealized gains (losses) on derivative 2018 $274,948 (56) 2017 $112,315 2016 $198,4 transactions (net of tax effects of $(7.782), $8,176, and ($1,922), 24,262 (18,005) 84 respectively) Foreign currency translation adjustments (net of tax effects of (18,079) 34,160 (4,4 $1,557, $(4), and $347, respectively) Other comprehensive income (loss) Comprehensive income 6,127 16,155 (3,6 281,075 128,470 194,79 Comprehensive income attributable to non-controlling interest 7,480 9,617 4,6 Comprehensive income attributable to Columbia Sportswear Company $273,596 $118,853 $190,11 Current Assets: See accompanying notes to consolidated financial statements COLUMBIA SPORTWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) ASSETS December 31, 2018 2017 Cash and cash equivalents (Note 21) $ 437,825 73,16 Restricted cash (Note 22) 13,970 Short-term investments (Note 21) 262,802 94,98 Accounts receivable, net (Note 6) 449,382 364,86 Inventories 521,827 457,92 Prepaid expenses and other current assets 79,500 58,55 Total current assets 1,765,306 1,649,49 Property, plant, and equipment, net (Note 7) 291,596 281,39 ntangible assets, net (Note 8) 126,575 129,55 Goodwill (Note 8) 68,594 68,59 Deferred income taxes (Note 11) 78,155 56,80 Other non-current assets 38,495 27,05 Total assets $2,368,721 $2.212,90 LIABILITIES AND EQUITY Current Liabilities: Accounts payable Accrued liabilities (Note 10) Income taxes payable (Note 11) Total current liabilities Other long-term liabilities (Notes 12, 13) Income taxes payable (Note 11) Deferred income taxes (Note 11) Total liabilities Commitment and contingencies (Note 14) Shareholders' Equity: Preferred stock; 10,000 shares authorized; none issued and outstanding Common stock (no par value); 250,000 shares authorized; 68,246 and 69,995 issued and outstanding (Note 15) $ 274,435 275,684 $ 252,301 182,228 22.763 19,107 572,882 453,636 45,214 48,735 50,791 58,104 9,521 168 678,408 560,643 45,829 Retained earnings 1,677,920 1,585,009 Accumulated other comprehensive loss (Note 18) (4,063) (8,887) Total Columbia Sportswear Company shareholders' equity 1,673,857 1,621,951 Non-controlling interest (Note 5) 16,456 30,308 Total equity 1,690,313 1,652,259 Total liabilities and equity $2,368,721 $2,212,902 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating Year Ended December 31, 2018 2017 2016 $274,948 $112,315 $198,439. activities: Depreciation and amortization 58,230 59,945 60,016 Loss on disposal or impairment of property, plant, and equipment 4,208 1,927 4,805 Deferred income taxes 1,462 44,851 (19,178) Stock-based compensation 14.291 11,286 10,986 Changes in operating assets and liabilities: Accounts receivable (25,601) (24,197) 36,710 Inventories (94,716) 46,662 (18,777) Prepaid expenses and other current (9,771) (19,241) (5,452) assets Accounts receivable. (25,601) (24,197) 36,710 Inventories (94.716) 46,662 (18,777) Prepaid expenses and other current (9,771) (19,241) (5,452) assets Other assets (12,421) 931 (5,948) Accounts payable 19,384 30,568 1,483 Accrued liabilities 86,900 11,581 4,847 Income taxes payable (3,958) 58,702 4,768 Other liabilities (3,387) 5,798 2,468 Net cash provided by operating 289,569 341,128 275,167 activities Cash flows from investing activities: Purchases of short-term investments (518,755) (130,993) (21,263) Sales and maturities of short-term investments 352,127 36,282 21,263 Capital expenditures Proceeds from sale of property, plant, and equipment Net cash used in investing activities (65,622) (53,352) (49,987) 19 279 97 (232,231) (147,784) (49,890) Cash flows from financing activities: Proceeds from credit facilities 70,576 3,374 62,885 Repayments on credit facilities (70,576) (3,374) (64,825) Proceeds from issuance of common stock related to stock-based 18,484 19,946 13,167 compensation Tax payments related to stock-based (4,285) (3,662) (5,117) compensation Repurchase of common stock (201,600) (35,542) (11) Cash dividends paid (62,664) (50,909) (48,122) Cash dividends paid to non-controlling interest (19,949) Payment of related party note payable (14,236) Net cash used in financing activities Net effect of exchange rate changes on (270,014) (84,403) (42,023) (8,695) 12,836 cash (1,635) Net (decrease) increase in cash, cash equivalents and restricted cash (221,371) 121,777 181,619 Cash, cash equivalents and restricted cash, beginning of period 673,166 551,389 369,770 Cash, cash equivalents and restricted $451,795 cash, end of period $673,166 $551,389 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 $ 77,408 $ 81,045 $ 70,424 685 1,049 BALANCE, JANUARY 1, 2016 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 related to stock- based compensation, net Stock-based compensation expense Repurchase of common stock BALANCE, DECEMBER 31, 2016 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders' Equity Common Stock Accumula Other Shares Related Outstanding Amount Earnings Comprehen Income (L 69,277 $34,776 $1,385,860 $(20,836) 191,898 596 8,050 10,986 (11) (48,122) (2) 686 (2,465) 69,873 53,801 1,529,636 (22,617) DECEMBER 31, 2016 Net income Other comprehensive income (loss): Unrealized holding gains (losses) on derivative transactions, net Foreign currency translation adjustment, net Cash dividends ($0.73 per share) Issuance of common stock related 69,873 53,801 1,529,636 (22,617) 105,123 to stock- based compensation, net 787 16,284 Stock-based compensation expense 11,286 Repurchase of common stock (665) (35,542) 1,159) (17,489) (50,909) 31,219 BALANCE. DECEMBER 31, 2017 69,995 45,829 1,585,009 (8,887) Net income 268,256 Other comprehensive income (loss): Unrealized holding losses on available- for-sale securities, net Unrealized holding gains on derivative transactions, net Foreign currency translation. adjustment, (56) 23.195 based compensation, net 787 16,284 Stock-based compensation expense 11,286 Repurchase of common stock (665) (35,542) BALANCE, DECEMBER 31, 2017 268,256 (8,887) 69,995 45.829 1,585,009 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 ($0.90 per share) Dividends to non- controlling interest Adoption of new accounting standards Issuance of common stock related to stock-based compensation, 1 1 (62.664) (56) 23,195 (17,800) 14,600 (515) net 600 14,199 Stock-based compensation expense 14,291 Repurchase of common stock (2,349) (74,319) (127,281) BALANCE DECEMBER 31, 2018 68,246 $1,677,920 S(4,063) See accompanying notes to consolidated financial stat