The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation

Question:

The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C.

Instructions

(a) For each company, calculate the following values for 2014.

(1) Working capital.

(2) Current ratio.

(3) Debt to assets ratio.

(4) Free cash flow.

(When calculating free cash flow, do not consider business acquisitions to be part of capital expenditures.)

(b) Based on your findings above, discuss the relative liquidity and solvency of the two companies.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...