Question

Need to choose a publicly traded company. Using the most recent SEC 10-k or Annual report, the Company I chose is Under Armour and the information is provided in the SEC website for 2018 & 2019; however I am unable to locate and calculate the information requested below in the website. : Please help.

Provide the Company's cash balance for the past 2 years.

Provide the Company's accounts receivable for past 2 years.

Identify the Note that discusses 'Cash and cash equivalents' and summarize it.

Identify the Note(s) relevant to accounts receivable and discuss the key accounting policies.

Discuss the allowance for doubtful accounts.

Provide the Company's inventory balance for the past 2 years.

Discuss the Company's policies for reporting inventory.

Compute the AR turnover and Days Outstanding for Receivable.

Compute the Inventory turnover and Days Sales in Inventory.

Answer 1

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Under Armour
Figures in thousands	31-Dec-19	31-Dec-18
Company's cash balance	788,072.00	557,403.00
Company's accounts receivable	708,714.00	652,546.00

Note that discusses 'Cash and cash equivalents'

This is on page 60.

The Company considers all highly liquid investments with an original maturity of three months or less at date of inception to be cash and cash equivalents. The Company's restricted cash is reserved for payments related to claims for its captive insurance program, which is included in prepaid expenses and other current assets on the Company's consolidated balance sheet. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows.

	31-Dec-19	31-Dec-18
Cash and cash equivalents	788,072.00	557,403.00
Restricted cash	7,936.00	8,657.00
Total cash, cash equivalents and restricted cash	796,008.00	566,060.00

Note(s) relevant to accounts receivable

This is on page 60.

Concentration of Credit Risk

Financial instruments that subject the Company to significant concentration of credit risk consist primarily of accounts receivable. The majority of the Company’s accounts receivable is due from large retailers. Credit is extended based on an evaluation of the customer’s financial condition and collateral is not required. None of the Company's customers accounted for more than 10% of accounts receivable as of December 31, 2019 and December 31, 2018, respectively. For the years ended December 31, 2019, 2018 and 2017, no customer accounted for more than 10% of net revenues

Sale of Accounts Receivable

In 2018, the Company entered into agreements with two financial institutions to sell selected accounts receivable on a recurring, non-recourse basis. In 2019, the Company amended one agreement to reduce the facility amount. Under each agreement, the Company may sell up to $140.0 million and $50.0 million, respectively, provided the accounts receivable of certain customers cannot be outstanding simultaneously with both institutions. Balances may remain outstanding at any point in time. The Company removes the sold accounts receivable from the consolidated balance sheets at the time of sale. The Company does not retain any interests in the sold accounts receivable. The Company acts as the collection agent for the sold accounts receivable balances on behalf of the financial institutions.

As of December 31, 2019 and 2018, there were no amounts outstanding in connection with these arrangements. The funding fee charged by the financial institutions is included in the other income (expense), net line item in the consolidated statement of operations.

Allowance for Doubtful Accounts

The Company makes ongoing estimates relating to the collectability of accounts receivable and maintains an allowance for estimated losses resulting from the inability of its customers to make required payments. In determining the amount of the reserve, the Company considers historical levels of credit losses and significant economic developments within the retail environment that could impact the ability of its customers to pay outstanding balances and makes judgments about the creditworthiness of significant customers based on ongoing credit evaluations. Because the Company cannot predict future changes in the financial stability of its customers, actual future losses from uncollectible accounts may differ from estimates. If the financial condition of customers were to deteriorate, resulting in their inability to make payments, a larger reserve might be required. In the event the Company determines a smaller or larger reserve is appropriate, it would record a benefit or charge to selling, general and administrative expense in the period in which such a determination was made. As of December 31, 2019 and 2018, the allowance for doubtful accounts was $15.1 million and $22.2 million, respectively.

Inventories

Inventories consist primarily of finished goods. Costs of finished goods inventories include all costs incurred to bring inventory to its current condition, including inbound freight, duties and other costs. The Company values its inventory at standard cost which approximates landed cost, using the first-in, first-out method of cost determination. Net realizable value is estimated based upon assumptions made about future demand and retail market conditions. If the Company determines that the estimated net realizable value of its inventory is less than the carrying value of such inventory, it records a charge to cost of goods sold to reflect the lower of cost or net realizable value. If actual market conditions are less favorable than those projected by the Company, further adjustments may be required that would increase the cost of goods sold in the period in which such a determination was made.

Figures in thousands	31-Dec-19	31-Dec-18
Net revenues	5,267,132.00	5,193,185.00
Company's accounts receivable	708,714.00	652,546.00
AR turnover	7.43	7.96
Days Outstanding for Receivable.	49.11	45.86
Figures in thousands	31-Dec-19	31-Dec-18
Cost of goods sold	2,796,599.00	2,852,714.00
Inventories	892,258.00	1,019,496.00
Inventory turnover	3.13	2.80
Days Sales in Inventory	116.45	130.44