Managerial Accounting Chapter 1 & 2 Homework Help
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Assignment: Chapter 2 Decision Case 1 1.
Comparing Two Companies in the Same Industry: Columbia Sportswear and Under Armour
Refer to the financial information for Columbia Sportswear and Under Armour for the information needed to answer
the following questions.
Required:
1. Compute each company's working capital at the end of the two most recent years. Also, for each company,
compute the change in working capital during the most recent year. Enter amounts in thousands.
Columbia Sportswear:
12/31/11 Working capital: $ _________________
12/31/10 Working capital: $ _________________
Change in working capital: $ _________________
Under Armour:
12/31/11 Working capital: $ _________________
12/31/10 Working capital: $ _________________
Change in working capital $ _________________
2. Compute each company's current ratio at the end of the two most recent years. Compute the percentage change
in the ratio during the most recent year. Round your answers for the current ratio to two decimal places. Convert the
percentage change from a decimal to a percentage and then round to one decimal place. For example, .0051478 would
be converted to .51478% and rounded to .5%.
Columbia Sportswear:
12/31/11 Current ratio: _________________ :1
12/31/10 Current ratio: _________________ :1
Percentage change in ratio _________________ %
Under Armour:
12/31/11 Current ratio: _________________ :1
12/31/10 Current ratio: _________________ :1
Percentage change in ratio _________________ %
3. What are the largest current assets both companies report on the balance sheet at the end of the most recent
year?
_________________
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