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I have more work for you... Do all 4 questions

Focus on Analysis i Under Armour, Inc.

(Learning Objective 4: Analyze financial statements) Refer to Under Armour, Inc.'s, financial statements in Appendix B and online in the filings section of http://www.sec.gov. Suppose you are an investor considering buying Under Armour, Inc.'s, common stock. The following questions ace important. Show amounts in millions.

requirement

1. Which was larger for Under Armour, Inc., during 2014: (l) net revenues or (2) cash collected from customers? Wby? Show computation. (Challenge)

2. Investors are vitally interested in a company's sales and profits and its trends of sales (net revenues) and profits over time. Consider Under Armour, Inc.'s, net revenues and net income (net loss) during the period from 2012 through 2014. Compute the percentage increase or decrease in net revenues and also in net income (net loss) from 2012 to 2014. Which item grew faster during this two-year periodnet revenues or net income (net loss)? Can you offer a possible explanation for these changes? (Challenge)

Requirements

3. Focus on cash and cash equivalents. Why did cash and cash equivalents change during 2014? The statement of cash flows holds the answer to this question. Analyze the seven largest individual items on the statement of cash flows (not the summary subtotals such as "net cash provided by operating activities"). For each of the seven individual items, state how Under Armour's actions affected cash. Show amounts in millions and round to the nearest $1 million. (Challenge)

4. Refer to Exhibit 4-2 on page 205 that contains the Report of Management on Internal Control over Financial Reporting. Under Armour, Inc. has a similar report included in its annual report. Show how this report corresponds to the objectives of internal control included in this chapter. (Challenge)

Exhibit 4-2 Excerpt from Public Company Management Report on Internal Controls

Management is responsible for establishing and maintaining adequate internal control over financial reporting The Company's internal control over financial reporting includes the maintenance of records that . . . accurately and fairly reflect the transactions and . . . assets of the Company.. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company.

Under the supervision and with the participation of management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting Based on our evaluation . . . management concluded that our internal control over financial reporting was effective as of December 31, 2016.