Download Under Armour's 2016 annual report.

https://about.underarmour.com/investor-relations/financials/annual-reports

Browse through the report. Part 1 of the report contains general information regarding the company, including a description of the general business (Item 1), risk factors (Item 1A). Our primary focus will be on the company's financial statements and related disclosures (pp. 57-89), which follow the auditor's report on page 56. Also important to understanding the information in the financial statements is MD&A Item 7 (pp. 34-54), which describes company financial reporting policies and issues.

4 points each:

1.Examine Under Armour's 2016 & 2015 Statements of Income (p. 58).What is the company's profit margin in 2015 & 2016?What are the reasons for the decrease in profit margin?

2.From the balance sheets presented on page 57, what is Under Armour's working capital

at the end of 2016?

3.Current assets in the Balance Sheet grew significantly in 2016. What is Under Armour's current ratio at 12/31/2015 and 12/31/2016? Why is the current ratio at the end of 2016 smaller than that at the end of 2015?

4.Examine Under Armour's 2016 & 2015 Income Statement. For a company with almost $5 billion in sales for 2016, do you think there is a lack of detail in the income statement? Where would you look for more information regarding their 2015 performance?

5. Net income increased in 2016 compared to 2015. In your opinion, did Under Armour have a better year in 2016 than it did in 2015? Choose the statement that you most agree with. Explain your answer.

a. Yes, net income increased in 2016

b. No, net income as a percentage of net revenues declined in 2016

c. No, income before taxes is almost the same in both years, despite lower revenues in

2015.

d. Yes, in the Statement of Cash Flows (p. 61), "Net cash provided by operating activities

for the year" is much higher in 2016.