Accounting revising

Current Liabilities (millions) Long-term Liabilities(millions) 2016 826.7 861.2 2015 834.7 879.1 Under Armour: Current Liabilities Long-term Liabilities 2016 685,816 790,388 2015 478,810 624,070 c) ​Coach Inc ​: The largest long term debt instrument for Coach Inc. is the $600 Million 4.250% Senior Notes issued in March 2015. It has an interest rate of 4.25% and will run for 10 years and so matures in March 2025. The purpose for which the notes were issued has not been disclosed in the financial report. The second largest long term debt instrument is a term loan of 270 Million. The carrying value was 300 Million but the company prepaid the rest of the amount. It is set for Maturity in March 18, 2020 and has an interest of 1.72%. Under Armour ​: The largest debt long-term debt instrument for Under Armour is the 3.250% senior notes of 600 million, issued in June 2016 to repay and reduce the outstanding amounts under the revolving credit facility. It has an interest rate of 3.25% and will run for 10 years hence is due in June 2026. The second largest long-term debt instrument is the term loan of 186.3 Million that is set for maturity in January 2021 at an average interest rate of 1.6% p.a. d) Coach Inc ​: Common Stock (millions) Additional paid in capital(millions) Treasury Stock(millions) 2016 2.8 2857.1 0 2015 2.8 2757.4 0 Under Armour ​: Common Stock Additional paid in capital Treasury Stock 2016 145 823,484 0 2015 144 636,558 0 3. a) The level and percentage changes in cash, inventory, working capital, fixed assets, and debt Coach Inc. Under Armour Details Current Year Prior Year % Change Current Year Prior Year % Change Cash 859.0 1,291.8 -34% 250,470.0 129,852.0 93% Inventory 459.2 485.1 -5% 917,491 783,031 17% Working Capital 1,346.2 1,671.8 -19% 1,279,337 1,019,953 25% Fixed Assets 2,719.8 2,160.4 26% 1,679,178 1,367,207 23% Debt 2,209.8 2,177.0 2% 1,613,431 1,197,748 35% b) ​The trend in the current, acid test, debt-to-assets, and debt-to-equity ratios Coach Inc. Under Armour Details 2016 2015 2016 2015 Current Ratio 2.87 3.13 2.63 3.00 Acid Test Ratio 1.53 1.49 2.07 2.42 Debt-to-Asset Ratio 44% 42% 45% 47% Debt-to-Equity Ratio 79% 72% 82% 87% c) ​The relationship between cash and investments, cash and current liabilities, and investments and debt Coach Under Armour 2016 2015 % Change 2016 2015 % Change Cash 859 1291.8 -34% 250,470.0 129,852.0 93% Investment s 1,019.00 640 59% 174,507.0 152,242.0 15% Current Liabilities 826.7 834.7 -1% 685,816.0 478,810.0 43% Debt 2,209.8 2177 2% 1,613,431.0 1,197,748.0 35% Coach Inc. A decrease in cash of 34% was matched by an increase in Investments by 59% and a subsequent decrease in current liabilities by 1%. While investments increased by 59% debt increased at a slower rate by 2%. Under Armour An increase of 93% in cash was matched by an increase in Investments and current liabilities by 15% and 43% increase. While investments increased by 15% debt increased by 35%. d) ​The relationship between changes in receivables or inventory and changes in revenues. Coach Inc. Under Armour 2016 2015 % Change 2016 2015 % Change Receivables 245.2 219.5 12% 622,685.0 433,638.0 44% Inventory 459.2 485.1 -5% 917,491.0 783,031.0 17% Revenues 4,491.8 4191.6 7% 4,825,335.0 3,963,313.0 22% Coach Inc. While revenues increase by 7% the receivables increased by 12% meaning there were more credit sales made during the year. On the other hand the inventory levels decreased by 5%. Under Armour Revenues increased at half the rate of the increase in receivables. This could mean that most sales made during the year were on credit hence the un-proportional increase. Inventory on the other hand increase at 17% compared to the 22% increase in revenues. e) ​The relationship between increases in fixed assets and a company’s desire to expand operations. Coach Inc. Under Armour 2016 2015 % Change 2016 2015 % Change Fixed Assets 2,719.8 2160.4 26% 1,679,178.0 1,367,207.0 23% Coach Inc. ​:had experienced a growth in its location by 3.8% which can be attributed to their growth in fixed assets by 26%. Under Armour ​: saw an increase of 22% in their revenues as seen above. The increase in revenues could be attributed to the increase of 23% in fixed assets, hence assisting the company make progress towards achieving their operations expansion.