The following data are based on information in the 2013 annual reports of Aéropostale, Inc., and American Eagle Outfitters, Inc. Dollar amounts are in thousands. Aéropostale, Inc. is a retailer of casual apparel and accessories, targeting 14- to 17-year-old young women and young men. As of February 2, 2013, it operated 1,006 stores in 50 states Puerto Rico, and Canada. American Eagle Outfitters, Inc., is a retailer of clothing and accessories, targeting 15- to 25-year-old customers. As of February 2, 2013, it operated 1,044 American Eagle Outfitters stores in the United States, Puerto Rico, and Canada.

Required
a. Calculate each company€™s net income and retained earnings for 2013.
b. For each company, calculate its net earnings as a percentage of its revenues. Show your computations.
c. Which company performed better in 2013? Explain your answer.

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American Eagle Outfitters Aéropostale Assets Liabilities Stockholders' equity Revenues Expenses Dividends Retained earnings at end of 2012 $740,844 330,480 410,364 2,386,178 2,351,255 $1,756,053 534,866 1,221,187 3,475,802 3,243,694 414,301 1,771,464 459,279