1. Look at the "Reserve for Uncollectible Accounts Receivable" heading to Note 2 (Summary of Significant Accounting Policies). Does Under Armour use the percentage of credit sales method or the aging method to estimate bad debt expense?
2. Looking at the same note, what was Under Armour's allowance for doubtful accounts in 2009 and 2008?
3. Was a larger percentage of the gross accounts receivable considered uncollectible at December 31, 2008 or 2009?
4. Calculate Under Armour's receivables turnover for 2008 and 2009 (Accounts Receivable, net, was- $71,867 at December 31, 2007). (Note: Round answers to two decimal places.) If the industry average for receivables turnover is 24.78, how do you evaluate their efficiency with receivables?
5. Calculate Under Armour's gross profit margin, operating margin, and net profit margin for 2008 and 2009. (Note: Round answers to two decimal places.)
6. If the industry average for gross profit ratio is 36.61 percent, what sort of strategy do you think Under Armour is pursuing?
7. Evaluate the trend of Under Armour's operating margin and net profit margin and relate the trend to the industry averages of 10.97 percent and 6.54 percent, respectively.