Refer to the financial statements of Abercrombie & Fitch and Aeropostale that are supplied with this text.
1. How much cash and equivalents and short-term investments (or current marketable securities) did Aeropostale and Abercrombie & Fitch hold as a percentage of total assets at January 30, 2010, and January 31, 2009? Hint: It may help to do a search for ‘‘equivalents’’ in a word or pdf version of the 10-K.
2. Speculate as to differences in cash management policies between the two companies.
3. Describe the change in cash and equivalents and marketable securities as a percentage of total assets for Abercrombie & Fitch between 2009 and 2010.
4. Locate the Audit Opinion and describe the criteria by which Abercrombie & Fitch’s and Aeropostale’s internal control systems were evaluated.