For the information needed to answer the following questions refer to the financ
ID: 2490785 • Letter: F
Question
For the information needed to answer the following questions refer to the financial information for Under Armour and Columbia Sportswear
Under Armour: http://cvg.cengagenow.com/ilrn/books/pnal09h/swf/appb.pdf
Columbia: http://cvg.cengagenow.com/ilrn/books/pnal09h/swf/appc.pdf
1. What is the dollar amount of inventories that each company reports on its balance sheet at the end of the most recent year? Enter your answers in millions rounded to two decimal places.
Armour: $ _____ million
Columbia: $ _____ million
2. What percentage of total assets do inventories represent for each company? If required, round your answers to one decimal place.
Armour: _____ %
Columbia: _____ %
3. Refer to Note 2 in Under Armour’s annual report. What inventory valuation method does the company use?
A. Average cost
B. FIFO
C. LIFO
D. LIFO and FIFO
E. Retail
4. Refer to Note 2 in Columbia Sportswear’s annual report. What inventory valuation method does the company use?
A. Average cost
B. FIFO
C. LIFO
D. LIFO and FIFO
E. Retail
Explanation / Answer
After Reading the ANNUAL REPORT of both companies, following answers is provided to you:
Amount of inventories that each company reports on its balance sheet at the end of the most recent year ( i,e, year2011)
Armour: $ ___0.32 million
Columbia: $ _0.37 million
2. . What percentage of total assets do inventories represent for each company? If required, round your answers to one decimal place.
Armour: ___35.29%
Columbia: __26.42 %
3. Under Armour’s annual report,
FIFO inventory valuation method is used by company.
4. Columbia Sportswear’s annual report,
FIFO inventory valuation method is used by company.