Obtain Under Armour's 2007 10-K through the ''Investor Relations'' portion of their website. (Using a search engine, search for: Under Armour investor relations.) Once at the Investor Relations section of the website, look for ''SEC Filings.'' When you see the list of all the filings either filter for the ''Annual Filings'' or search for ''10-K.'' Another option is to go to www.sec.gov and click ''Search for company filings'' under ''Filings & Forms (EDGAR).''

Required:

1. What was Under Armour's allowance for doubtful accounts in 2006 and 2007?

2. Look at under the ''Accounts Receivable'' heading to Note 2 (Summary of Significant Accounting Policies). Does Under Armour use the percentage of credit sales method or the aging method to estimate bad debt expense?

3. Was a larger percentage of the gross accounts receivable considered uncollectible at December 31, 2006 or 2007?

4. Calculate Under Armour's receivables turnover for 2006 and 2007 (Accounts Receivable, net, was $53,132 at December 31, 2005). If the industry average for receivables turnover is 9.81, how do you evaluate their efficiency with receivables?

5. Calculate Under Armour's gross profit ratio, operating margin ratio, and net profit margin ratio for 2006 and 2007.

6. If the industry average for gross profit ratio is 24.88 percent, what sort of strategy do you think Under Armour is pursuing?

7. Evaluate the trend of Under Armour's operating margin ratio and net profit margin ratio and relate the trend to the industry averages of 7.65 percent and 5.99 percent, respectively.