EYK6-1. Financial Reporting Problem: The Columbia Sportswear Company The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this textbook.

Required

Answer the following questions using Columbias Consolidated Financial Statements:

a. How much inventory does Columbia carry on its balance sheet? What percentage of Colum-

bias total assets does inventory represent in 2017 and 2016?

b. Compute the inventory turnover and days sales in inventory for 2017 and 2016. Calculate

inventory turnover using end of year inventory.

c. Is Columbias inventory management improving?

EYK6-2. Comparative Analysis Problem: Columbia Sportswear Company vs Under Armour, Inc. The financial statements for Columbia Sportswear Company can be found in Appendix A at the end of this textbook, and the financial statements of Under Armour, Inc. can be found in Appendix B.

Required

a. Compare the dollar value of inventory carried on the balance sheet by each company in 2017

and 2016. Which company carries the greatest dollar amount of inventory? Compare the ratio

of inventory divided by total assets for each company for 2017 and 2016. Which company

carries the largest relative investment in inventory?

b. Calculate the inventory turnover and days sales in inventory for 2017 and 2016 for each

company. Inventory at December 31, 2015, for Columbia and Under Armour, Inc. was $473.6

million and $783.0 million, respectively.

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