The financial statements for the Columbia Sportswear Company can be found in Appendix A at the end of this book. You are considering an investment in Columbia Sportswear after a recent outdoor trip in which you really liked some of the clothes you purchased from the company. You decide to do an analysis of the company's financial statements in order to help you make an informed decision.

Required

a. Using the five-year selected financial data reported in the annual report, produce a five-year trend analysis, using 2013 as a base year, of (1) net sales, (2) net income, and (3) total assets. Comment on your findings.

b. Calculate the (1) gross profit percentage, (2) return on sales, and (3) return on assets for 2016 and 2017. Comment on Columbia Sportswear's profitability. (2015 total assets \(=\) \(\$ 1,846,153,000)\)

c. Calculate the (1) current ratio, (2) quick ratio, and (3) operating-cash-flow-to-current liabilities ratio for 2016 and 2017. ( 2015 current liabilities \(=\$ 355,070,000)\) Comment on Columbia Sportswear's liquidity.

d. Calculate the debt-to-equity ratio for 2016 and 2017. Comment on Columbia Sportswear's solvency.