Question

AN CT4-2 The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Identify two accounts on Columbia's balance sheet that provide evidence that Colum- bia uses accrual accounting. In each case, identify the income statement account that would be affected by the adjustment process. (b) Identify two accounts on VF's balance sheet that provide evidence that VF uses accrual accounting (different from the two you listed for Columbia). In each case, identify the income statement account that would be affected by the adjustment process.

Answer 1

	Columbia Sportswear Company			VI Corporation
	2014	2013	2012	2014	2013	2012
	$	$	$	$	$		$
Net Sales	2100590	1684996	1699563	12154784	11302350		10766020
Royalty Income	------	-------	-------	127377	117298		113835
Total Revenue				12282161	11419648		10879855
Cost of sales/Cost of goods sold	1145639	941341	953169	6288190	5931469		5817880
Gross Profit(NS-COS)	954951	743655	716394	------	-------		-------
Selling-Gen. & Admn. Exp	763063	625656	596635	4159885	3841032		3596708
Impairment of goodwill and intangible assets	-------	--------	-------	396362	---		---
				10844437	9772501		9414588
Net licensing income	6956	13795	13769
Income from Operation	198844	131794	133528	1437724	1647147		1465267
Interest income ,net	1004	503	379	6911	4141		3353
Interest exp.on note payable Related party (Note 22)	(1053)	-	-	(86725)	(84773)		(93605)
Other non operating /other income (expenses) net	(274)	(871)	--	(5544)	(4025)		46860
Income before Income Tax	198521	131426	133907	1352366	1562490		1421875
Income tax expense(Note 11)	(56662)	(37823)	(34048)	304861	352371		335737
Net Income	141859	93603	99859	1047505	1210119		1086138
Net income(Loss) attributable to non controlling interest	4686	(738)	---	-----	------		(139)
Net income attributable to Columbia Sportswear Company (Note 17) Basic Diluted	1.97 1.94	1.37 1.36	1.48 1.46	------	-------		------
Net income attributable to VF Corporation common stock holders	-------	-------	------	1047505	1210119		1085999
Earnings per common share attributable to VF Corporation common stock holders Basic Diluted	---------	--------	------	2.42 2.38	2.76 2.71		2.47 2.43
Weighted average share outstanding (Note 17) Basic Diluted	69807 70681	68756 69434	67680 68264	------	-------		-------
Cash dividends per common	-------	------	------	1.1075	.9150		.7575

1. Royalty income made by VI Corporation where as in the case Columbia Sportswear it is nil.
2. Net LIcence income occurred in Columbia whereas it is nil in VI Corp.
3. Net income attributable to Columbia sports 1.97,1.37,1.48 for basic and for diluted 1.94,1.36 and 1.46 whereas Earnings per share for vi corp is 2.42,2.76,2.47 for basic and 2.38,2.71.2.43 respectively.