Comparative Analysis Problem
Purpose of Assignment
The purpose of this assignment is to help you understand the basics of financial statement analysis
using financial ratios on the assets section of the balance sheet, data interpretation, and how ratios
are used to gain insight about the management of receivable.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Develop an 875-word analysis providing conclusions concerning the management of accounts
receivable based on the financial statements of Columbia Sportswear Company presented in
Appendix B and the financial statements of VF Corporation presented in Appendix C, including the
following: Based on the information contained in these financial statement, compute the following
2014 values for each company:
o Accounts receivable turnover (For VF, use "Net sales" and assume all sales were
credit sales) o Average collection period for accounts receivable What conclusions concerning the management of accounts receivable can be drawn from
this data? Use the Week 1 Excel® spreadsheet to show your work and submit with your analysis.
Columbia Sportswear Company vs. VF Corporation