(2) Given the information presented on Sheet 1, calculate the DuPont Model for Under Armour for the year ended at Dec. 31, 2015. Show calculations following the table.
	Under Armour INC.
Profit Margin (PM)
Asset Turnover (AT)
Return on Assets (ROA)
Financial Leverage (FL)
Return on Equity (ROE)

Common-size analysis- Given the information presented on Sheet 1, a) Complete these tables using common-size analysis; b) Summarize the highlights from common-size analysis for Under Armour and indicate possible red flags following the tables.
Income statement - Common Size
UNDER ARMOUR	Amounts (in 000s)	Percentages
For year ended	12/31/2015	12/31/2015
Net revenues	$ 3,963,313	100%
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
Balance sheets - Common Size
UNDER ARMOUR	Amounts (in 000s)		Percentages
For year ended	12/31/2015	12/31/2014	12/31/2015	12/31/2014
Assets
Cash and cash equivalents	$ 129,852	$ 593,175
Accounts receivable, net	433,638	279,835
Inventories	783,031	536,714
Prepaid expenses and other current assets	152,242	87,177
Deferred income taxes	-	52,498
Total Current Assets	1,498,763	1,549,399
Property and equipment, net	538,531	305,564
Goodwill	585,181	123,256
Intangible assets, net	75,686	26,230
Deferred income taxes	92,157	33,570
Other long-term assets	78,582	57,064
Total Assets	$ 2,868,900	$ 2,095,083	100%	100%
Liabilities and Stockholders' Equity
Accounts payable	$ 200,460	$ 210,432
Accrued expenses	192,935	147,681
Current maturities of long term - debt	42,000	28,951
Other current liabilities	43,415	34,563
Total Current Liabilities	478,810	421,627
Long-term debt, net of current maturities	352,000	255,250
Long-term line of credit, noncurrent	275,000	-
Other long-term liabilities	94,868	67,906
Total Liabilities	1,200,678	744,783
Stockholders' Equity
Additional paid-in capital	636,630	508,350
Retained earnings	1,076,533	856,687
Accumulated other comprehensive loss	(44,941)	(14,737)
Total Stockholders' Equity	1,668,222	1,350,300
Total Liabilities and Stockholders' Equity	$ 2,868,900	$ 2,095,083	100%	100%

UNDER ARMOUR INC.
Consolidated Statement of Income
For 12 Months Ended ($ in 000s)	12/31/2015
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
$ in 000s	12/31/2015	12/31/2014
Assets
Cash and cash equivalents	$ 129,852	$ 593,175
Accounts receivable, net	433,638	279,835
Inventories	783,031	536,714
Prepaid expenses and other current assets	152,242	87,177
Deferred income taxes	-	52,498
Total Current Assets	1,498,763	1,549,399
Property and equipment, net	538,531	305,564
Goodwill	585,181	123,256
Intangible assets, net	75,686	26,230
Deferred income taxes	92,157	33,570
Other long-term assets	78,582	57,064
Total Assets	$ 2,868,900	$ 2,095,083
Liabilities and Stockholders' Equity
Accounts payable	$ 200,460	$ 210,432
Accrued expenses	192,935	147,681
Current maturities of long term - debt	42,000	28,951
Other current liabilities	43,415	34,563
Total Current Liabilities	478,810	421,627
Long-term debt, net of current maturities	352,000	255,250
Long-term line of credit, noncurrent	275,000	-
Other long-term liabilities	94,868	67,906
Total Liabilities	1,200,678	744,783
Stockholders' Equity
Additional paid-in capital	636,630	508,350
Retained earnings	1,076,533	856,687
Accumulated other comprehensive loss	(44,941)	(14,737)
Total Stockholders' Equity	1,668,222	1,350,300
Total Liabilities and Stockholders' Equity	$ 2,868,900	$ 2,095,083