Refer to the financial information for Under Armour annual report & identify whe
ID: 2487143 • Letter: R
Question
Refer to the financial information for Under Armour annual report & identify where each of the following users of accounting information would first look to answer their respective questions about Under Armour. Under Armour’s financial information can be found here: http://cvg.cengagenow.com/ilrn/books/pnal09h/swf/appb.pdf
Required: For each of the following questions/scenarios please indicate where users would FIND the requested information. NOTE: Please choose between options A - F for each question/scenario as they are the ONLY answers for each one.
1. Investors: How much did the company earn for each share of stock that I own?
A. Consolidated balance sheet
B. Consolidated statement of cash flows
C. Consolidated statement of income
D. Not on any financial statement
2. Were any divindends paid?
A. Consolidated balance sheet
B. Consolidated statement of cash flows
C. Consolidated statement of income
D. Not on any financial statement
3. How much was reinvested in the company? The amount reinvested in the company is equal to __(1)___ less __(2)___. Note: Options A – D are the answers for both parts 1 & 2. There should be an answer for both 1 & 2 of this question.
A. Dividends
B. Expenses
C. Net income
D. Revenue
4. It would appear on the
A. Consolidated statement of cash flows
B. Consolidated statement of earnings
C. Consolidated statement of shareholder’s equity
D. Management discussion & analysis of financial condition & results of operations
E. Not on any financial statement
5. Potential investors: What amount of earnings can I expect to see from Under Armour in the near future?
A. Based on the past year’s financial statements alone, it is impossible to know exactly what earnings in the future will be
B. Consolidated balance sheet
C. Consolidated statement of cash flows
D. Consolidated statement of earnings
E. Consolidated statement of shareholder’s equity
F. Management discussion & analysis of financial condition & results of operations
6. Suppliers: Should I extend credit to Under Armour? Does it have sufficient cash or cashlike assets to repay accounts payable?
A. Management discussion & analysis of financial condition & results of operations
B. Consolidated balance sheet & statement of cash flows
C. Consolidated statement of earnings
D. Consolidated statement of shareholder’s equity
E. Not on any financial statement
7. IRS: How much does Under Armour owe for taxes?
A. Consolidated balance sheet
B. Consolidated statement of cash flows
C. Consolidated statement of shareholder’s equity
D. Management discussion & analysis of financial condition & results of operations
E. Not on any financial statement
8. Bankers: What is Under Armour's long-term debt? Should I make a new loan to the company?
A. Consolidated balance sheet & notes to financial statements
B. Consolidated statement of cash flows
C. Consolidated statement of earnings & consolidated statement of cash flows
D. Management discussion & analysis of financial condition & results of operations
E. Not on any financial statement
Explanation / Answer
1. C. Consolidated statement of income
2. D. Not on any financial statement
3. 1. C. Net income 2. A. Dividends
4. C. Consolidated statement of shareholder’s equity
5. D. Consolidated statement of earnings
6. B. Consolidated balance sheet & statement of cash flows
7. A. Consolidated balance sheet
8. A. Consolidated balance sheet & notes to financial statements