The statement of cashflow show how a company sources cash and its cash expenditures over a specified period. In this case, it will be an evaluation of the Under Armor statement of cash flow. Under Armor net cash flows were 318,135 in 2017, 566,060 in 2018 and 796,008 in 2019. It can be confirmed that the total cashflows of Under Armor were increasing in this period. This positive trend in the total cashflows resulted from the increased cash flow from operating and the decreasing net cash outflows from the investing activities and financing activities of Under Armor.
The adjustment to reconcile the net income from the operating activities' net cash flows involves adding or subtracting the non-cash items in the income statements such as depreciation and amortization (Lessambo, 2018). Also, balance sheet items such as the assets are included. This reconciliation results to $237,460 million in 2017, $628,230 million in 2018 and $509,031 million in 2019. Therefore, it can be concluded that the largest adjustment to reconcile the net income from the operating activities was that of 2018, amounting to $628,230million.
Delegate your assignment to our experts and they will do the rest.
The investing activities of Under Armor decreased from $628 million in 2019 to 509 million in 2020. There was a capital expenditure of $144.3 million in 2019 and $154.3 million in 2018. This decline was due to the decline in capital expenditures. Also, there was the purchase of 10% common stock in Dome Corporation.
The financing activities in cashflow highlights how a company raises and pays capital to its investors. Th statement of cash flows of Under Amor was negative and declining. The financing activities decreased by $52 million from $189 million in 2019 to $137million. The reduction was due to more decline in borrowings and net repayments on credit facilities in 2019 than in 2018 (Omar, 2016). It can be concluded that Under Armor has reduced its capital payments.
References
Omar, A. (2016). Cash flows from financing activities. Evidence from the automotive industry. International Journal of Academic Research in Accounting, Finance and Management Sciences , 6 (1), 115-122.
Lessambo, F. I. (2018). Analysis of the Statements of Cash Flows. In Financial Statements (pp. 195-206). Palgrave Macmillan, Cham.
