Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com.

Required:

1. Look at Under Armour's Note 2 (Summary of Significant Accounting Policies) under the heading Allowance for Doubtful Accounts. Based on this disclosure, what is the balance in the allowance for doubtful accounts for 2015 and 2016? If actual losses from uncollectible accounts differ enough from the estimates in the allowance for doubtful accounts, where would Under Armour record a benefit or charge?

2. Look at Columbia's Note 5. What was Columbia's allowance for doubtful accounts as a percentage of gross accounts receivable at the end of 2015 and 2016?

3. Using the balances reported on the balance sheets, what are Under Armour's and Columbia's receivables turnover for 2016?

4. Calculate Under Armour's and Columbia's gross profit margin for 2015 and 2016. What can you infer about the strategy pursued by these two companies based on these measures, assuming the industry average is around 31.7%?

5. Calculate Under Armour's and Columbia's operating margin for 2015 and 2016. Comment on these measures assuming the industry average is around 7.6%.

6. Calculate Under Armour's and Columbia's net profit margin for 2015 and 2016. Comment on these measures assuming the industry average is 3.7%.