comparative analysis

Purpose of Assignment

The purpose of this assignment is to help you understand the basics of financial statement analysis using financial ratios on the assets section of the balance sheet, data interpretation, and how ratios are used to gain insight about the management of receivable.

Assignment Steps

Resources: Financial Accounting: Tools for Business Decision Making, 8th Edition.

Develop an 875-word analysis providing conclusions concerning the management of accounts receivable based on the financial statements of Columbia Sportswear Company presented the financial statements of VF Corporation , including the following:

  • Based on the information contained in these financial statement, compute the following 2014 values for each company:
    • Accounts receivable turnover (For VF, use “Net sales” and assume all sales were credit sales)
    • Average collection period for accounts receivable
  • What conclusions concerning the management of accounts receivable can be drawn from this data?

The essay will comply with APA formatting guidelines. An introduction and a conclusion paragraphs are required. The essay will have the following two section headings: Accounts Receivable and Average Collection Period. The questions above are not to be used as section headings.

Specimen Financial Statements:

Columbia Sportswear Company is a leader in outdoor sportswear. The following are Columbia’s financial statements as presented in its 2014 annual report. To access Columbia’s complete annual report, including notes to the financial statements, follow these steps:

  1. Go to www.columbia.com.
  2. Select Financial Information and then Annual Reports under the Investor Relations tab near the bottom of the page.
  3. Select the 2014 Annual Report.
  4. The Notes to Consolidated Financial Statements begin on page 50.

VF Corporation is a leader in outdoor sportswear. The following are VF’s financial statements as presented in its 2014 annual report. To access VF’s complete annual report, including notes to the financial statements, follow these steps:

  1. Go to www.vfc.com.
  2. Select the Investor Relations link and then select Financial Reports.
  3. Select the 2014 Annual Report on Form 10‐K.
  4. The Notes to Consolidated Financial Statements begin on page F‐10.
 
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