Accounting question

Need to analyze each data. Why they changed from 2015 to 2016? Example: why Depreciation expense decrease.

Coach Inc.(millions) Under Armour(thousands)

Details 2016 2015 2016 2015

Amounts 919.5 732.6 804,211 538,531

Depreciation Expense 219.1 240.6 130,700 86,300

Accumulated Depreciation 861.8 841.0 397,056 293,333

Coach Inc.(millions) Under Armour(thousands)

Details 2016 2015 2016 2015

Current Liabilities 826.7 834.7 685,816 478,810

Long-term Liabilities 861.2 879.1 790,388 624,070 indicated the total amount for the current and prior year-end on your company’s balance sheet for each stockholders’ equity item

Coach Inc.(millions) Under Armour(thousands)

Details 2016 2015 2016 2015

Common Stock 2.8 2.8 145 144

Additional paid in capital 2857.1 2757.4 823,484 636,558

Treasury Stock 0 0 0 0

3. a) The level and percentage changes in cash, inventory, working capital, fixed assets, and debt

Coach Inc. Under Armour

Details Current Year

Prior Year

% Change

Current Year Prior Year % Change

Cash 859.0 1,291.8 -34% 250,470.0 129,852.0 93%

Inventory 459.2 485.1 -5% 917,491 783,031 17%

Working Capital 1,346.2 1,671.8 -19% 1,279,337 1,019,953 25%

Fixed Assets 2,719.8 2,160.4 26% 1,679,178 1,367,207 23%

Debt 2,209.8 2,177.0 2% 1,613,431 1,197,748 35%

b)​The trend in the current, acid test, debt-to-assets, and debt-to-equity ratios

Coach Inc. Under Armour

Details 2016 2015 2016 2015

Current Ratio 2.63 3.00 2.87 3.13

Acid Test Ratio 2.07 2.42 1.53 1.49

Debt-to-Asset Ratio 38% 47% 44% 42%

Debt-to-Equity Ratio 82% 87% 79% 72%

c) ​The relationship between cash and investments, cash and current liabilities, and investments and debt

Coach Under Armour

2016 2015 % Change 2016 2015 % Change

Cash 859 1291.8 -34% 250,470.0 129,852.0 93%

Investment s 1,019.00 640 59% 174,507.0 152,242.0 15%

Current Liabilities 826.7 834.7 -1% 685,816.0 478,810.0 43%

Debt 2,209.8 2177 2% 1,613,431.0 1,197,748.0 35% d) ​The relationship between changes in receivables or inventory and changes in revenues.

Coach Inc. Under Armour

2016 2015 % Change 2016 2015 % Change

Receivables

245.2 219.5 12%

622,685.0

433,638.0 44%

Inventory

459.2 485.1 -5%

917,491.0

783,031.0 17%

Revenues 4,491.8 4191.6 7%

4,825,335.0 3,963,313.0 22% e) ​The relationship between increases in fixed assets and a company’s desire to expand operations.

Coach Inc. Under Armour

2016 2015 % Change 2016 2015 % Change

Fixed Assets 2,719.8 2160.4 26%

1,679,178.0

1,367,207.0 23%