Purpose: To help you understand and compare the performance of two companies in the same industry.

Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Consolidated Statements of Cash Flows on page 666. Now access the 2014 Annual Report for Under Armour, Inc., from the internet. For instructions on how to access the report online, See the industry Analysis in Chapter 1. The companys Consolidated Statements of Cash Flows is on page 54.

Requirement:

Which method (direct or indirect) does each of these companies use to prepare their statements of cash flows? How can you tell? Which activities provided cash for each of the companies for each of the three years? Which activities used cash for each of these companies for each of the three years? What conclusions can you draw from these results?