Refer to the financial statements of Abercrombie & Fitch and Aeropostale that are supplied with this text.

Required:

1. How much cash and equivalents and short-term investments (or marketable securities) did Aeropostale and Abercrombie & Fitch hold as a percentage of total assets at February 3, 2007, and January 28, 2006?

2. Speculate as to differences in cash management policies between the two companies.

3. Describe the change in the mix of cash and equivalents and marketable securities for Abercrombie & Fitch between 2006 and 2007. Speculate as to why this may have happened.

4. Locate the Audit Opinion and describe the criteria by which Abercrombie & Fitchs and Aeropostales internal control systems were evaluated.