Colombia sportwear 10k report

Due: Tuesday May 12, 2020 at 2pm. Late assignments will not be accepted after the due date.

Possible Points: The assignment is worth a maximum of 20 points. Your grade is based upon the percentage of questions answered correctly.

General: Note that some of these general questions may require you to do a bit of on-line research.

1. Which of the following forms is a required annual SEC filing?

a. 8K

b. 10Q

c. 10K

d. Proxy Statement

2. Which of the following forms is a required quarterly SEC filing?

a. 8K

b. 10Q

c. 10K

d. Statement Proxy Statement

3. Which of the following forms does the SEC require to be filed at any time during the year when a company needs to announce “major events” that shareholders should know about?

a. 8K

b. 10K

c. 10Q

d. Statement Proxy Statement

4. What are US publicly traded firms required to file with the SEC when soliciting shareholder votes? This statement is useful in assessing how management is paid and potential conflict-of-interest issues with auditors. The statement includes: voting procedure and information; background information about the company's nominated directors; director compensation; executive compensation; a breakdown of audit and non-audit fees paid to the auditor

a. Proxy statement

b. Press release

c. MD&A (Management’s Discussion and Analysis)

d. Statement of Retained Earnings

5. On which stock exchange is Columbia Sportswear Company traded?

a. Penny stocks

b. NASDAQ

c. AMEX

d. NYSE

6. Who is Columbia Sportswear’s external auditor?

a. Ernst and Young

b. Deloitte and Touche

c. KPMG

d. PricewaterhouseCoopers

7. The order of information presented in a 10K is generally specified by the SEC, so it will be virtually the same for all companies’ filings. Based upon your review of the Columbia Sportswear 10K Table of Contents, which of the following is the correct order that these major items appear?

a. Selected financial data, management discussion and analysis (MD&A), financial statements and auditors’ report, description of the business, risk factors.

b. Financial statements and auditors’ report, description of the business, risk factors, selected financial data, management discussion and analysis (MD&A).

c. Description of the business, risk factors, selected financial data, management discussion and analysis (MD&A), financial statements/auditors’ report.

d. Management discussion and analysis (MD&A), financial statements and auditors’ report, description of the business, risk factors, selected financial data.

8. What report provides assurance that Columbia Sportswear’s financial statements are “fairly stated”?

a. Report of Independent Registered Public Accounting Firm on pages 31-33

b. Report of Management on Design and Evaluation of Internal Control over Financial Reporting on page 67

c. Report of Independent Registered Public Accounting Firm on page 68

9. Which of the following provide assurance that Columbia Sportswear’s system of internal controls is operating effectively?

a. Report of Independent Registered Public Accounting Firm on pages 31-33

b. Report of Management on Design and Evaluation of Internal Control over Financial Reporting on page 67

c. Report of Independent Registered Public Accounting Firm on page 68

10. Did Columbia Sportswear Company get an “unqualified” opinion on their financial statements?

a. Yes

b. No

11. When is Columbia Sportswear’s fiscal year end for 2019?

a. March 31st

b. June 30th

c. September 30th

d. December 31st

12. Which was NOT listed as a risk factor for the Columbia Sportswear Company in 2019?

a. Downturns in the Global credit market

b. Supply chain is dependent on contract manufacturers

c. Weather conditions, including global climate change trends

d. Changes in product demand related to customer preferences and fashion trends

e. All of the above are listed as risk factors

13. Which of the following are NOT identified as Critical Accounting Policies and Estimates in the 10K?

a. Revenue recognition

b. Allowance for uncollectible accounts receivable

c. Excess, close-out and slow moving inventory

d. Impairment of long-lived assets and goodwill

e. All of the above are identified as Critical Accounting Policies and Estimates

Chapter 4 and 17

14. What does Columbia Sportswear call its income statement?

a. Income Statement

b. Profit and Loss Statement

c. Statement of Comprehensive Income

d. Consolidated Statements of Operations

15. What is Columbia Sportswear’s Gross Margin for 2019 (in thousands)?

a. $1,159,962

b. $1,386,348

c. $1,515,670

d. $ 394,971

e.

16. What is the numerator (in thousands) for the calculation of the 2019 Basic EPS of $4.87?

a. $105,123

b. $268,256

c. $274,948

d. $330,489

17. What is the denominator (in thousands) for the calculation of the 2019 Basic EPS of $4.87?

a. 67,837

b. 68,493

c. 69,614

d. 70,401

18. Which of the following is NOT true for the non-controlling interest in Columbia Sportswear?

a. During 2017 and 2018 it related to ownership of their China business, but it went away in 2019 when the China business became a wholly owned subsidiary.

b. In 2018, the non-controlling interest share of net income was $6.7 million .

c. In 2018, the non-controlling interest reduced net income attributable to Columbia Sportswear and also reduced Columbia’s Net Assets by being included on the balance sheet as part of the equity section.

d. All of the above are true.

19. On which statement does Columbia Sportswear present comprehensive income?

a. Consolidated Statement of Operations

b. Consolidated Statements of Comprehensive Income

c. Combined Statement of Comprehensive Income

d. Consolidated Statement of Equity

20. Which of the following are NOT Other Comprehensive Income items for 2019?

a. Unrealized holding gains on available-for-sale securities

b. Unrealized gains on derivatives

c. Unrealized holding gains on trading securities

d. Foreign currency translation adjustments

Chapter 5

21. What is the largest asset on Columbia Sportswear’s 12/31/19 balance sheet?

a. Cash

b. Inventories

c. PP&E

d. Accounts Receivable

22. Which of the following is NOT true about Operating Leases for Columbia Sportswear?

a. An asset and a liability appear on the balance sheet at 12/31/19.

b. The company had no operating leases in previous years, all their facilities were owned outright by the company

c. There was a new accounting pronouncement that required inclusion of the leases on the balance sheet. Columbia adopted this accounting pronouncement in 2019.

23. Where can Accumulated Other Comprehensive Income NOT be found? Recall this is different from Comprehensive Income.

a. Income Statement

b. Equity section of the Balance Sheet

c. Statement of Shareholders’ Equity

24. Which category of fair value securities is largest for Columbia?

a. Level 1

b. Level 2

c. Level 3

25. Columbia Sportswear has future commitments related to contractual agreements and contingencies. Which of the following material commitments or contingencies is NOT disclosed in the footnotes?

a. Operating lease obligations

b. Inventory Purchase obligations

c. Litigation

d. Indemnities and guarantees

26. Which of the following financial statements does NOT disclose information about dividends?

a. Balance sheet

b. Statement of cash flows

c. Statement of shareholders’ equity

27. Which of the following are NOT valued at fair value according to the Summary of Significant Accounting Policies disclosure in Columbia Sportswear’s 10K?

a. Cash and cash equivalents

b. Inventories

c. Available for Sale Securities

d. Trading Securities

For the next three questions, use the ratios from Chapter 5 in your textbook

28. What is Columbia Sportswear’s 2019 Current Ratio?

a. 3.08

b. 2.97

c. .74

d. .78

29. What is Columbia Sportswear’s 2019 Inventory Turnover Ratio?

a. 1.37

b. 5.39

c. 2.61

d. 2.71

30. What is Columbia Sportswear’s 2019 Profit Margin on Sales?

a. 12.98%

b. 10.86%

c. 9.57%

d. 9.07%

Chapter 23

31. Does Columbia Sportswear use the direct or indirect method for its cash flow statement?

a. Direct

b. Indirect

32. What is the largest single item that caused Columbia Sportswear’s cash flow from operations to differ from net income in 2019?

a. Increase in inventories

b. Increase in accounts receivable

c. Decrease in accounts payable

d. Depreciation

33. From what category of activities did Columbia Sportswear generate the greatest amount of cash in 2019?

a. Operating

c. Financing

34. In which category of activities does Columbia Sportswear use the greatest amount of cash in 2019?

a. Operating

b. Investing

c. Financing

35. What is the net amount of cash provided (used) by Columbia Sportswear in 2019 related to Investing activities (in thousands)?

a. $285,452

b. $140,728

c. ($232,231)

d. ($140,728)

Chapter 7

36. How much was Columbia Sportswear’s allowance for doubtful accounts at the end of 2019 (in thousands?)

a. $ 8,925

b. $11,051

c. $488,233

d. $449,382

37. Which of the following does not discuss Columbia Sportswear’s Revenue Recognition Policy?

a. Income Statement

b. MD&A

c. Footnote 2

d. Critical Accounting Policies

38. How does Columbia Sportswear recognize shipping and handling fees billed to customers?

a. As part of revenue

b. As part of selling expense

c. As part of cost of goods sold

d. In its own revenue line item

39. Does Columbia have any single customer who makes up greater than 10% of their revenues?

a. No

b. Yes

Chapter 8 and 9

40. What costing method does Columbia Sportswear use for inventory?

a. LIFO

b. Average

c. FIFO

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