Practice Exercise 03 Under Armour, Inc., included the following income statement and the comparative balance sheet in its 2011 Annual Report. All amounts are presented in thousands of dollars 2011 2010 2009 $1,472,684 $1,063,927 $856,411 533,420 446,286 410,125 418,152 324,852 85,273 2,344 Net revenues 759,848 712,836 550,069 162,767 3,841 Cost of goods sold Gross margin 530,507 Selling, general and administrative expenses Income from operations Interest expense, net Other expense, net 112,355 2,064 156,862 59,943 2,258 1,178 108,919 40,442 96,919 68,477 $46,785 511 82,418 35,633 Income before income taxes Income tax provision Net income Dec. 31, 2011 $175,384 134,043 324,409 55,827 689,663 159,135 70,412 $919,210 Dec. 31, 2010 Cash Accounts receivable Inventories Other current assets $203,870 102,034 215,355 34,591 555,850 76,127 43,401 $675,378 Total current assets Property and equipment Other assets Total assets Accounts payable $100,527 $84,679 $100,527 69,285 6,882 6,913 183,607 70,842 28,329 282,778 17 268,223 368,192 636,432 $919,210 Accounts payable Accrued expenses Current portion of long-term debt Other current liabilities 84,679 55,138 6,865 2,465 149,147 9,077 20,188 178,412 17 224,887 272,062 496,966 $675,378 Total current liabilities Long-term debt Other long-term liabilities Total liabilities Common stock Paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders equity Calculate the following ratios for the year ended December 31, 2011: (Round answers to 2 decimal places, e-g 10.25%.) a. Current ratio b. Acid-test (quick) ratio c. Average collection period d. Average days to sell inventory e. Debt ratio f. Debt-to-equity ratio g. Times interest earned ratio h. Gross margin percentage days days times Return on assets (tax rate-35%) Return on common stockholders' equity Earnings per share (51,570 thousand average shares outstanding) j. k. /share LINK TO TEXT Calculate the following ratio for the year ended December 31, 2011: (Round answers to 2 decimal places, e.g 10.25%.) a. Price/earnings ratio (year-end market price $35.90)