ACC291 University of Phoenix VF Corporation Comparative Analysis Paper

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User Generated

User

anilgrk1980

Subject

Business Finance

Course

ACC291

School

University of Phoenix

Description

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:
- Accounts receivable turnover (For VF, use "Net sales" and assume all sales were credit sales)
- 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.

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Name Section Date (a) Chapter 8 Comparative Analysis Problem Columbia Sportswear Company vs. VF Corporation Columbia Sportswear VF Corporation (1) Accounts receivable turnover: (2) Average collection period: (b) 475 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: jcholden07@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Columbia Sportswear Company is a leader in outdoor sportswear. The following are Columbia's financial statements as presented in its 2014 annual report. To access Columbia's complete annual report, including notes to the financial statements, follow these steps: 1. Go to www.columbia.com. 2. Select Financial Information and then Annual Reports under the Investor Relations tab near the bottom of the page. 3. Select the 2014 Annual Report. 4. The Notes to Consolidated Financial Statements begin on page 50. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 1/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 2/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: jcholden07@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 3/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: jcholden07@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 4/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 5/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 6/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: jcholden07@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. C Specimen Financial Statements: VF Corporation https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 7/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: jcholden07@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. VF Corporation is a leader in outdoor sportswear. The following are VF's financial statements as presented in its 2014 annual report. To access VF's complete annual report, including notes to the financial statements, follow these steps: 1. Go to www.vfc.com. 2. Select the Investor Relations link and then select Financial Reports. 3. Select the 2014 Annual Report on Form 10‐K. 4. The Notes to Consolidated Financial Statements begin on page F‐10. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 8/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: jcholden07@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 9/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: jcholden07@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 10/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making PRINTED BY: jcholden07@email.phoenix.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 11/12 12/3/2017 University of Phoenix: Financial Accounting: Tools for Business Decision Making https://phoenix.vitalsource.com/#/books/9781119228301/cfi/6/50!/4/4/14/2@0:5.95 12/12
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Explanation & Answer

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Name
Section
Date

(a)

Chapter 8 Comparative Analysis Problem
Columbia Sportswear Company vs. VF Corporation

Columbia Sportswear

VF Corporation

(1) Accounts receivable turnover:
Columbia
Credit sales
Beginning A. receivables
Ending A. receivables
Average account receivables
Receivables turnover

FY 2014

VF

FY 2014

2,100,590
306,878
344,390
325,634
6.45

12,154,784
1,360,443
1,276,224
1,318,334
9.22

365
6.45
56.58

365
9.22
39.59

(2) Average collection period:
Number of days in a year
Receivables turnover ratio
Collection period

(b)

VF corporation has a higher account receivable ratio compared to Columbia Sportwear.
This implies that VF managed its accounts recievables more efficiently compared to
Columbia Sportwear. VF collected its credit sales faster than its industry competitor.

475

Surname 1

Name
Supervisor
Course
Date
Comparative analysis
Introduction
V.F Corporation operates by designing, producing, procuring, marketing, and distributing
branded footwear, lifestyle apparel, and other related products in Europe, Americas, and Asian
Pacific. The company operates in four divisions Jeanswear, Sportswear, Imagewear, and Outdoor
and Action Sports. VF offers handbags, backpacks, accessories, footwear, and equipment,
outdoor apparel, surfing footwear, youth culture inspired footwear, women’s activewear, merino
wool socks, vans, JanSport, Timberland, Reef, Smartwool, Napapijiri, Eagle Creek, Eastpak, and
Lucy brands among others. ...