The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation

Question:

The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C.

Instructions

(a) Based on the information contained in these financial statements, compute the current ratio for 2014 for each company. What conclusions concerning the companies' liquidity can be drawn from these ratios?

(b) Based on the information contained in these financial statements, compute the following 2014 ratios for each company.

(1) Debt to assets ratio.

(2) Times interest earned.

What conclusions about the companies' long-run solvency can be drawn from the ratios?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...