Question

Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A, and Under Armour, Inc's financial can be found in Appendix B at the end of this book.

Columbia Statements are here:

http://www.chegg.com/homework-help/questions-and-answers/financial-statements-columbia-sportswear-company-presented-appendix-b-based-information-fi-q20398389

Columbia annual reports are here: http://investor.columbia.com/annuals.cfm

Under Armour Statements are here: Keep scrolling you will see the info needed. https://www.sec.gov/Archives/edgar/data/1336917/000133691715000006/ua-20141231x10k.htm

Under Armour annual reports are here: http://www.annualreports.com/Company/under-armour-inc

Required

a) Calculate the accounts receivable turnover and the average collection period for Columbia Sportswear and Under Armour, Inc. for 2014 and 2013. (To calculate the accounts receivable turnover, use the ending net accounts receivable balance as the denominator rather than average net accounts receivable.)

b) Compare the average collection periods for the two companies and comment on possible reasons for the difference in the average collection periods for the two companies.

Answer 1