1. Why do we need to add back to net income non-cash
transactions and changes in...
1. Why do we need to add back to net income non-cash
transactions and changes in working capital assets when using the
indirect method?
2. A company used cash for both operating and investing
activities, but had a positive cash flow from financing activities.
What does this cash flow pattern suggest about this
company?
3. Sales for Harlem Tool & Die during 20X1 was
$600,000, 75% of them on credit and 25% for cash. During the year,
accounts receivable increased...
Under Armour Inc.
Consolidated Statement
of Income
Dec. 31,
2015
Net Revenues
3,963,313
Cost of goods...
Under Armour Inc.
Consolidated Statement
of Income
Dec. 31,
2015
Net Revenues
3,963,313
Cost of goods sold
2,057,766
Gross profit
1,905,547
Selling, general and
administrative expenses
1,497,000
Income from operations
408,547
Interest expense, net
-14,628
Other expense, net
-7,234
Income before income taxes
386,685
Provision for income taxes
154,112
Net income
232,573
Under Armour Inc.
Consolidated Balance
Sheet
Dec. 31,
2015
Dec. 31,
2014
Assets
Cash and cash equivalents
129,852
593,175
Accounts receivable, net
433,638
279,835
Inventories
783,031
536,714
Prepaid...
spreadsheet.
Income Statement ($ million)
Balance Sheet ($ million)
Net Sales
186.2186.2
Assets
Costs Except Depreciation...
spreadsheet.
Income Statement ($ million)
Balance Sheet ($ million)
Net Sales
186.2186.2
Assets
Costs Except Depreciation
negative 175.9−175.9
Cash
22.222.2
EBITDA
10.310.3
Accounts Receivable
17.917.9
Depreciation and Amortization
negative 1.3−1.3
Inventories
15.715.7
EBIT
99
Total Current Assets
55.855.8
Interest Income (expense)
negative 7.7−7.7
Net Property, Plant, and Equipment
112.6112.6
Pre-tax Income
1.31.3
Total Assets
168.4168.4
Taxes
(2626%)
negative 0.3−0.3
Net Income
1.01.0
Liabilities and Equity
Accounts Payable
33.533.5
Long-Term Debt
112.3112.3
Total Liabilities
145.8145.8
Total Stockholders' Equity
22.622.6
Total Liabilities...
Analyzing and Interpreting Tax Footnote
Under Armour, Inc. reports total tax expense on its income
statement...
Analyzing and Interpreting Tax Footnote
Under Armour, Inc. reports total tax expense on its income
statement for year ended December 31, 2010 of $40,442 and cash paid
for taxes of $38,773.
The tax footnote in the company's 10-K filing, reports the
following deferred tax information.
Deferred tax assets and liabilities consisted of the following (in
thousands):
December 31 ($ thousands)
2010
2009
Deferred tax assets
State tax credits, net of federal tax impact
$ 1,750
$ --
Tax basis inventory...
Analyzing and Interpreting Tax Footnote
Under Armour, Inc.
reports total tax expense on its income statement...
Analyzing and Interpreting Tax Footnote
Under Armour, Inc.
reports total tax expense on its income statement for year ended
December 31, 2010 of $40,442 and cash paid for taxes of
$38,773.
The tax footnote in the company's 10-K filing, reports the
following deferred tax information.
Deferred tax assets and liabilities consisted of the following (in
thousands):
December 31 ($ thousands)
2010
2009
Deferred tax assets
State tax credits, net of federal tax impact
$ 1,750
$ --
Tax basis inventory...
The recognition that dividends are dependent on earnings, so a
reliable dividend forecast is based on...
The recognition that dividends are dependent on earnings, so a
reliable dividend forecast is based on an underlying forecast of
the firm's future sales, costs and capital requirements, has led to
an alternative stock valuation approach, known as the corporate
valuation model. The market value of a firm is equal to the present
value of its expected future free cash flows plus the market value
of its non-operating assets:
Free cash flows are generally forecasted for 5 to 10 years,...
3. 3: Stocks and Their Valuation: Corporate Valuation
Model
The recognition that dividends are dependent on earnings,...
3. 3: Stocks and Their Valuation: Corporate Valuation
Model
The recognition that dividends are dependent on earnings, so a
reliable dividend forecast is based on an underlying forecast of
the firm's future sales, costs and capital requirements, has led to
an alternative stock valuation approach, known as the corporate
valuation model. The market value of a firm is equal to the present
value of its expected future free cash flows plus the market value
of its non-operating assets:
Free cash flows...