(Instructions) Based on the information below, write a brief summary about Columbia Sportswear Company" answering all of these questions. 1) What are your conclusions about the company's liquidityl and or solvency? 2) What are your conclusions about the company's profitability? 3) Discuss any significant items from the vertical or horizontal analysis that should be investigated and any significant one time events reported in the financial statements. Speculate on what caused the change and its implications for the company. A B D E F 1 2 3 4 Columbia Sportswear Company and Under Armour, Inc. Comparative Balance Sheet For the Year Ended December 31, 2020 COLM $ COLM % UA$ UA % $ $ 790,725 27.88% 1,517,361 30.16% 1,224 0.04% 452,945 15.97% 527,340 10.48% 556,530 19.62% 895,974 17.81% 54,197 1.91% 282,300 5.61% 1,855,621 65.42% 3,222,975 64.07% 309,792 10.99% 658,678 13.09% 339,244 11.96% 536,660 10.67% 103,558 3.66% 13,295 0.26% 68,594 2.42% 502,214 9.98% 96,126 3.39% 23,930 0.48% 63,636 2.24% 72,876 1.45% $2,836,571 100% $5,030,628 100% 5 Current Assets: 6 Cash and Cash Equivalents 7 Short Term Investments 8 Accounts receivable 9 Inventory 10 Other Current Assets 11 Total Current Assets 12 Property, plant and Equipment 13 Operating lease right-of-use assets 14 Intangible assets 15 Goodwill 16 Deferred income taxes 17 Other non-current assets 18 Total Assets 19 Liabilities & Stockholders Equity 20 Current Liabilities: 21 Accounts Payable 22 Accrued liabilities 23 Customer refund liabilities 24 Operating lease liabilities 25 Other Current Liabilities 26 Income taxes payable 27 Total Current Liabilities: 28 Non-current operating lease liabilities 29 Income taxes payable 30 Deferred income taxes 31 Other long term debts 32 Other long term liabilities 33 Total Liabilities 206,697 257,278 7.29% 9.07% 575,954 378,859 203,395 162,561 92,503 11.45% 7.53% 4.04% 3.23% 1.84% 65,466 2.31% 23,181 552,622 353,181 49,922 5,205 0.82% 19.48% 12.45% 1.76% 0.18% 1,413,276 839,414 28.09% 16.67% 1.96% 12,870 $1,003,800 0.45% 35.39% 98,389 1,003,556 3,354,635 20,165 0.71% 62 34 Stockholder's Equity 35 Preferred Stock 36 Common Stock 37 Class A 38 Class B 39 Class C 40 Additional Paid Capital 41 Retained Earnings 42 Accumulated common loss 43 Total Stockholders' Equity 44 Total Liabilities & Stockholders' Equity 0.0012 0.0022 0.0014 21.09% 13.39% -1.18% 33.32% 100% 1,811,800 806 1,832,771 2,836,571 11 71 1,061,173 673,855 -59,185 1,675,993 5,030,628 63.87% 0.03% 64.61% 100% A B C D E F 1 2 3 4 5 Net Sales 6 Cost of Sales 7 Gross Profit 8 Selling, General and Administration Expenses 9 Net Licensing Income 10 Restructuring and Impairment Charges 11 Income from Operations 12 Interest Income Net 13 Other Income Net 14 Other Non Operating Income Net 15 Income loss before income tax 16 Income Tax Expense 17 Income loss from equity method 18 Net Income Investment Columbia Sportswear Company and Under Armour Inc Comparative Income Statement For the year ended December 31, 2020 COLM $ COLM % UA $ UA % 2,501,554 100% 4,474,667 100% 1,277,665 51.07% 2,314,572 51.73% 1,223,889 48.92% 2,160,095 48.27% 1,098,948 43.93% 2,171,934 48.54% 12,108 0.48% 601,599 13.44% 137,049 5.48% -613,438 -13.71% 435 0.02% -47,259 -1.06% 168,153 3.76% 2,039 0.08% 139,523 5.58% -492,554 11.01% -31,510 1.26% 49,387 1.10% -7,246 0.16% 108,013 4.32% -549,177 12.27% A D E F 1 2 3 4 (in thousands) B Columbia Sportswear Company Comparative Balance Sheet December 31, 2020 and December 31, 2019 2019 2020 Amount of Increase/Decrease % Increase/Decrease 5 ASSETS 6 Current Assets: 7 Cash and cash equilvalents 8 Short-term investments A. 9 Accounts receivable, net allowance of $21,810 and $8,925 10. 10 Inventories, net 44 11 Prepaid expenses and other current assets 12 Total current assets 13 Property, plant and equipment, net een 14 Operating lease right of use assets aus 15 Intangible assets, net 10 16 Goodwill 1 17 Deferred income taxes ned 18 Other non-current assets andro 19 Total assets 20 LIABILITIES AND EQUITY 21 Current Liabilities: 22 Accounts payable 23 Accrued liabilities 24 Operating lease liabilities 25 Income taxes payable 26 Total current liabilities 27 Non-current operating lease liabilities 28 Income taxes payable 29 Deferred income taxes 30 Other long-term liabilites 31 Total liabilities 686,009 790,725 1,668 1,224 488,233 452,945 605,968 556,530 C C 93,868 54,197 1,875,746 1,855,621 346,651 309,792 394,501 339,244 12 123,595 103,558 68,594 68,594 78,849 96,126 43,655 63,636 2,931,591 2,836,571 104,716 -444 -35,288 -49,438 -39,671 -20,125 -36,859 -55,257 -20,037 0 17,277 19,981 -95,020 0.1526 -0.2662 -0.0723 -0.0816 -0.4226 -0.0107 -0.1063 -0.1401 -0.1621 0.0000 0.2191 0.4577 -0.0324 255,372 295,723 64,019 15,801 630,915 371,507 48,427 6,361 24,934 1,082,144 206,697 257,278 65,466 23,181 552,622 353,181 49,922 5,205 42,870 1,003,800 -48,675 -38,445 1,447 7,380 -78,293 -18,326 1,495 -1,156 17,936 -78,344 -0.1906 -0.1300 0.0226 0.4671 -0.1241 -0.0493 0.0309 -0.1817 0.7193 -0.0724 A B D E 0 0 0 32 Commitments and contingencies (Note 12) 33 Shareholders' Equity: 34 Preferred stock, 10,000 shares authorized, none issued and outstanding 35 Common stock (no par value); 250,000 shares authorized; 66,252 and 67,561 issued and outstanding 36 Retained earnings 37 Accumulated other comprehensive income (loss) 38 Total shareholders' equity 39 Total liabilities and shareholders' equity 4,937 1,848,935 -4,425 1,849,447 2,931,591 20,165 1,811,800 806 1,832,771 2,836,571 15,228 -37,135 5,231 -16,676 -95,020 0.0000 3.0845 -0.0201 -1.1821 -0.0090 -0.0324 A B D E 1 2 3 4 5 Net Sales 6 Cost of Sales 7 Gross Profit 8 Selling, General and Administrative Expenses 9 Net Licensing Income 10 Income from Operations 11 Interest Income, Net 12 Other non-operating income (expense), net 13 Income before income tax 14 Income tax expense 15 Net income Columbia Sportswear Company Comparative Income Statement December 31, 2020 and December 31, 2019 2019 2020 Amount of Increase/Decrease % Increase/Decrease 3042478 2501554 -540924 -0.1778 1526808 1277665 -249143 -0.1632 1515670 1223889 -291781 -0.1925 1136186 1098948 -37238 -0.0328 15487 12108 -3379 -0.2182 394971 137049 -257922 -0.6530 8302 -7867 -0.9476 2156 2039 -117 -0.0543 405429 139523 -265906 -0.6559 -74940 -31510 43430 -0.5795 330489 108013 -222476 -0.6732 435