The financial statements of Columbia Sportswear Company are presented in Appendix B. Click here to view Appendix B. Financial statements of Under Armour, Inc are presented in Appendix C. Click here to view Appendix C. For each company, calculate the following values for 2018. (Round ratios to 1 decimal places, eg, 15.2:1 or 15.2% and all other answers to thousands.) (1) Working capital Working capital Columbia Sportswear Under Armour $ (2) Current ratio. Current ratio -1 Columbia Sportswear Under Armour $ (2) Current ratio. Current ratio Columbia Sportswear :1 Under Armour :1 1 (3) Debt to assets ratio. Debt to assets ratio Columbia Sportswear % Under Armour % Appendix B Specimen Financial Statements: Columbia Sportswear Company Columbia Sportswear Company is a leader in outdoor sportswear. The following are Columbia's financial statements as presented in its 2018 annual report Columbia's complete annual report, including notes to the financial statements, is available at the company's website COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS In thousands, except per shule amounts) Year Ended December 31, 2018 2017 2016 Net sales $2,802,326 $2.466,105 $2.377,045 Cost of sales 1.415.928 1,306,143 1,266,607 Gross profit 1,386,348 1.159.962 1,110,348 Selling general and administrative expenses 1,051.152 910,894 864,084 Net licensing income 16786 13.901 10,244 Income from operations 350.98 262,969 2:56.508 Interest income, net 9.676 4.515 2 403 Interest expense on note payable to related party (Note 2a) (429) (1,041 Other non-operating expense (140 121) () Income before income tax 360,712 266.734 6.898 Income tax expense (Note 11) (269) (154-419) (459) Net income 274.948 112.315 198,439 Net income attributable to non-controlling interest 6,602 7192 0.541 Net income attributable to Columbia Sportswear Company 268,256 105,123 $ 191 898 Earnings per share attributable to Columbia Sportswear Company (Note 19) Basic S 3.85 $ 3:51 2.75 Diluted 3.81 1.49 2.72 Weighted average shares outstanding (Note 12) 69.614 69.759 69,683 Duuted 20.401 20,453 70,639 Baske See accompanying notes to consolidated financial statements 2016 COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, 2018 2017 Net income $274,948 $112.315 $198.439 Other comprehensive income (loss) Unrealized holding losses on available-for-sale securities (net of tax effects of $17, $o, and $o, respectively) (56) (2) Unrealized gains (losses) on derivative transactions (net of tax effects of $(7.782), $8,176, and ($1,922), respectively) 24,262 (18,005) 843 Foreign currency translation adjustments (net of tax effects of $1,557, $(4), and $347, respectively) (18.079) 34.160 (4.485) Other comprehensive income (loss) 6,127 16.155 (3.644) Comprehensive income 281,075 128,470 194.795 Comprehensive income attributable to non-controlling interest 7480 9,617 4.678 Comprehensive income attributable to Columbia Sportswear Company $273.596 $118,853 $190,117 See accompanying notes to consolidated financial statements COLUMBIA SPORTWEAR COMPANY CONSOLIDATED BALANCE SHEETS (In thousands) December 31. 2018 2017 ASSETS $ 73,166 Current Assets Cash and cash equivalents (Note 21) Restricted cash (Note 22) Short-term investments (Note 21) Accounts receivable, net (Note 6) Inventories Prepaid expenses and other current assets $ 437,825 13.970 262,802 449.382 521,827 79,500 94.983 364,862 457.927 58.559 CONSOLIDATED BALANCE SHEETS (In thousands) December 31, 2018 2017 $ 73,166 ASSETS Current Assets: Cash and cash equivalents (Note 21) Restricted cash (Note 22) Short-term investments (Note 21) Accounts receivable, net (Note 6) Inventories Prepaid expenses and other current assets Total current assets Property, plant, and equipment, net (Note 7) Intangible assets, net (Note 8) Goodwill (Note 8) Deferred income taxes (Note 11) Other non-current assets Total assets LIABILITIES AND EQUITY Current Liabilities: Accounts payable Accrued liabilities (Note 10) Income taxes payable (Note 11) Total current liabilities Other long-term liabilities (Notes 12, 13) Income taxes payable (Note 11) Deferred income taxes (Note 11) Total liabilities Commitment and contingencies (Note 14) Shareholders' Equity $ 437,825 13,970 262,802 449.382 521,827 79,500 1,765.306 291,596 126,575 68,594 78,155 38,495 $2,368,721 94,983 364,862 457.927 58.559 1,649.497 281,394 129.555 68,594 56,804 27.058 $2,212,902 $ 274,435 275,684 22.763 572,882 45,214 50,791 9.521 678,408 $ 252,301 182,228 19,107 453,636 48.735 58,104 168 560,643 Accounting 2e%2Febook%2Fepub%2F9781119591344% Total liabilities 678,408 560,643 Commitment and contingencies (Note 14) Shareholders' Equity Preferred stock: 10,000 shares authorized: none issued and outstanding Common stock (no par value); 250,000 shares authorized; 68,246 and 69,995 issued and outstanding (Note 15) 45.829 Retained earnings 1,677,920 1,585.009 Accumulated other comprehensive loss (Note 18) (4,063) (8,887) Total Columbia Sportswear Company shareholders' equity 1,673,857 1,621,951 Non-controlling interest (Note 5) 16,456 30,308 Total equity 1,690.313 1,652,259 Total liabilities and equity $2.368,7721 $2,212,902 See accompanying notes to consolidated financial statements COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2018 2017 2016 Cash flows from operating activities: Net income $274,948 $112,315 $198.439 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 58,230 59.945 60,016 Loss on disposal or impairment of property, plant, and equipment 4.208 1,927 4,805 Deferred income taxes 1,462 44,851 Stock-based compensation (19,178) 14,291 11,286 10,986 Changes in operating assets and liabilities: Accounts receivable (25,601) (24,197) 36.710 Inventories (94.716) 46,662 (18,777) Prepaid expenses and other current assets (9.771) (19,241) (5.452) Other assets (12,421) 931 (5.948) Accounts payable 19.384 KA -On CONSOLIDATED STATEMENTS OF EQUITY (In thousands) Columbia Sportswear Company Shareholders! Equity Common Stock Shares Outstanding 69,277 Amount $34.776 Related Earnings $1,385,860 191,898 Accumulated Other Comprehensive Income (Loss) $(20,836) Non- Controlling Interest $16,013 6.541 Total $1.415.813 198,439 (2) (2) 686 (2,465) 157 (2.000) 843 (14.485) (48,129) BALANCE, JANUARY 2016 Net income Other comprehensive income (loss). Unrealized holding losses on available for sale securities, net Unrealized holding gains on derivative transactions, net Foreign currency translation adjustment, net Cash dividends ($0.69 per share) Issuance of common stock related to stock-based compensation, bet Stock based compensation expense Repurchase of common stock BALANCE, DECEMBER 31, 2016 Net income Other comprehensive income Close) Unrealized holding gaine Clone) o derivative transaction.net Foreign currency tradition adjustment, net Cash dividends ($0.73 per share) Issuance of common stock related to stock-based compensation, net Stock-based compensation expense Raranno man 8,050 10,086 (11) 53.801 8,050 10,086 (11) 1.581.511 09.83 (92,619) 1,629.036 105.133 20,691 7,190 (17489) 31,219 (510) 2,941 (16,846) 34,160 (50,909) (50,909 78% 16,284 11286 16,28.1 11286 TA (56) ( (6) 23.195 (17.800) 1,067 (270) Unrealized holding losses on available for sale securities, niet Unrealized holding gains on derivative transactions, net Foreign currency translation adjustment, bet Cash dividends ($0.00 per share) Dividends to non-controlling interest Adoption of new accounting standards Lesunce of common stock related to stock based compensation, det Stock-based compensation expense Repurchase of common stock BALANCE, DECEMBER 31, 2018 11 (62,664) 24.262 08.079) (62.664) (21332) 14,085 (21,332) 14,600 (525) 600 14.199 14.991 14.319) (2349) 63240 (1200 51.272.000 14,109 14,291 Coni.com $1,600 113 $14.063) -ppendix C -pecimen Financial Statements: Under Armour, Inc. nder Armour, Inc. is a leader in outdoor sportswear. The following are Under Armour's financial statements as presented in its 2018 annual report. Under Armour's complete annual report, cluding notes to the financial statements, is available at the company's website. Under Armour, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) December 31, December 31 2018 2017 Assets Current assets Cash and cash equivalents $ 557.403 $ 319.483 Accounts receivable.net 652.546 609,670 Inventories 1,019496 1.158.548 Prepaid expenses and other current assets 364,183 256.978 Total current assets 2.593.628 2,337,679 Property and equipment, net 826,868 885774 Goodwill 546,494 555,674 Intangible assets, net 41.793 46,995 Deferred income taxes 112,420 89.802 Other long term assets 123,819 97.444 Total assets $4,245.022 $4,006,367 Liabilities and Stockholders' Equity Current liabilities Revolving credit facility, current $ 125,000 Accounts payable 580,884 561.108 Accroed expenses 340,415 296,841 Customer refund liability 301.421 Current maturities of long term debt 25.000 27.000 Other current liabilities 88.257 50.42 Total current liabilities 1,315.977 1,060,374 27,000 50.426 1,060.375 765046 162,304 1,987.725 61 11 11 25.000 Other current liabilities 88,257 Total current liabilities 1.345.977 Long term debt niet of current maturities 703.834 Other long term liabilities 208 340 Total liabilities 2,228,151 Commitments and contingencies (see Note) Stockholders' equity Class A Common Stock, $0.0093 1/3 par value: 400,000,000 shares authorized as of December 31, 2018, and 2017: 187.210.319 shares issued and outstanding as of December 31, 2018 and 185.257.493 shares issted and outstanding as of December 31, 2017 62 Class Convertible Common Stock. $0.0003 1/3 par value: 34-450,000 shares authorised, inued and outstanding an of December 31 2018, and 2017 Class Common Stock, 50.0003 1/3 par valoe: 400,000,000 shares authorized as of December 31, 2018 and 2017; 296,421,963 shares issued and outstandings of December 31, 2018 and 299,375.079 shares sued and outstanding as of December 31, 2017 75 Additional pald-in capital 916,628 Retained earnings 1,119,082 Accumulated other comprehensive loss (98,982 Total stockholders' equity 2,016,021 Total liabilities and stockholders' equity $4,245,092 See accompanying notes Under Armour, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) Year Ended December 31, 2018 2017 2016 Net revenues $5.193.185 $4,089,244 $4.833338 Cost of goods sold 2,852.7714 2.237830 -2.584.724 Gross profit 2.340,471 2.251.414 2,248,614 Selling general and administrative expenses 2,182,339 9.099.522 1,831143 Restructuring and impairment changes 183.149 12:40:49 Income (loss) from operations (25.017) 27.8.43 417.471 Interest expense, net (33.568) (34.538) (26,434) Other expense.net (9,203) (3.614) (225) 74 872,266 1,184441 (98,211 9,018,642 $4,006,30 27,843 (34.538) (3,614 (10,309) 37.951 417471 (26434) 2.765) 388.282 131303 984 (48,260 Restructuring and impairment charges 183.149 Income (loss) from operations (25.017) loterest expense, bet (33.568) Other expense, net (9,203) Income (loss) before income taxes (67988) Income tax expense (benefit) (20,552) Income from equity method investment Net income (los) (66 302) Adjustment payment to Class capital stockholders Net income (loss) available to all stockholders $ (46,302) Basic net income (loss) per share of Class A and B common stock $ (0.10) Basic net income (lo) per share of Class common stock $ (0.10 Diluted net income (los) per share of Class A and B common stock $ (0.10) Diluted net income (los) per share of Class common stock $ (0.10) Weighted average common shares outstanding Class A and B common stock Basic 221,001 Diluted 221.001 Weighted average common shares outstanding Class common stock Basic 224,814 Diluted 324,814 See accompanying notes Under Armour, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (Loss) (in thousands) $ (48.260 $ (011) $ (0.11) $ $ (0.11) 296.222 59.000 $ 197,979 $ 0.45 $ 0.72 $ 0.45 $ 0.71 (0.11) 219,254 219,254 217.707 921,944 221,475 221,475 218,60 222,904 Year Ended December 31, 2018 2017 2016 $146.300) $(48.260) $256.979 (1835 22357 (13.705 Net incotte loss) Other comprehensive income (los) Foreign currency translation adjustment Unrealized gain doss) on cash flow hedge, net of tax benefit (expense) of $(7.936). $5.068 and $3.346) for the years ended December 31, 2018, 2017 and 2016, respectively Gain Coss) on intra-entity foreign currency transactions Total other comprehensions 22,800 (5.041) (16,624) 7,199 KOR 9.084 (2,416 $147.978 Comprehensive income (loss See accompanying notes Under Armour, Inc. and Subsidiaries Consolidated Statements of Stockholders' Equity (In thousands) Class B Convertible lass A Common Stock Common Stock Class Common Stock Additional part-in- hares Amount Shares Amount Shares Amount Capital Accumulated Other Comprehensive Income Retained Earnings Total Equity $(45,013) $1,688,222 1.630 56: 34.450 51,076,533 $11 316_080 6,203 790 971 6,203 (199) (276) (15.098) (15.098) 1.500 7.884 7.884 28.834 05.835 1.642 $6,073 (50,000) (0,02) $1,139,082 $138.987 $2.016821 990.52 See accompanying notes Under Armour, le and Subsidiaries Consolidated Statements of Cash Flows (In thousands) Year Ended December 31, 2017 2018 2016 $46,302) $(48200) $256.99 144.770 12.622 181.768 14.023 9,893 254 4,256 44783 Cash flows from operating activities Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation and amortization Unrealised foreign currency exchange rate (gains) losses Impairment charges Amortization of bond premium Loss on disposal of property and equipment Stock-based compensation Excess tax benefit (loss) from stock-based compensation arrangements Deferred income taxes Changes in reserves and allowances Changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other assets Accounts payable Accrued expenses and other liabilities Customer refund liability Income taxes payable and receivable Net cash provided by operating activities Cash Cows from investing activities Purchase of property and equipment Sale 173.747 (29,24%) 71.378 254 2318 39.92 (75) 55.900 108.757 1.680 46,149 44783 (43.004) 70,18 (38.544) (234098) 156,834 109.919 (107.855) 79.106) (322,391) (5,106) 145.695 109.833 (249.853) (148,055) (23.029) 202.446 6754 305.141 41.05 628930 139,164 237460 (16,712) 366,623 (170) (281319) (316.45) (281,339) 1179 11,285 (316,458) (70,288) (39,207 III (4.597) (202,904) (1,648) (282,987) (24,230) 30,712 (875) (381139) 505.000 (695,000) (2,743) 2,580 306 (1) 763,000 (665.000) (2.781) 11,540 1,327,601 (1,170,750) (15.098) 15,485 hty and equipment Purchases of property and equipment from related parties Purchase of equity method investment Purchases of available-for-sale securities Sales of available-for-sale securities Purchases of other assets Net cash used in investing activities Cash flows from financing activities Proceeds from long term debt and revolving credit facility Payments on long term debt and revolving credit facility Employee taxes paid for shares withheld for income taxes Proceeds from exercise of stock options and other stock issuances Other financing fees Payments of debt financing costs Cash dividends paid Contingent consideration payments for acquisitions Net cash provided by (used in) financing activities Effect of exchange rate changes on cash, cash equivalents and restricted cash Net increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash Beginning of period End of period Non-cash investing and financing activities Change in accrual for property and equipment Non-cash dividends Other supplemental information Cash paid for income taxes, net of refunds Cash paid for interest, net of capitalized interest See accompanying notes. 106,759 (189,868) 12,467 247.925 (6,692) (2,927) (1,505) 146,114 (8.725) 122,873 4.198 65.410 318,135 $566,060 252.725 $318,315 129,852 $ 252.725 $(14,611) $10,580 $16,973 (56,073) (16,738) 28.586 36,921 29.750 135.959 21,412