Refer to the financial statements of American Eagle Outfitters given in Appendix B at the end of this book. At the bottom of each statement, the company warns readers to "Refer to Notes to Consolidated Financial Statements." The following questions illustrate the types of information that you can find in the financial statements and accompanying notes.
Required:
1. What items were included as noncurrent assets on the balance sheet?
2. How much land did the company own at the end of the most recent reporting year?
3. What percentage of current liabilities were "Unredeemed store value cards and gift certificates" during the current year (round to one decimal place)?
4. At what point were website sales recognized as revenue?
5. The company reported cash flows from operating activities of $338,426,000. However, its net income was only $80,322 for the year. What was the largest single cause of the difference?
6. What was the highest stock price for the company during fiscal 2014? Some companies will label a year that has a January year-end as having a fiscal year-end dated one year earlier. For example, a January 2015 year-end may be labeled as Fiscal 2014 since the year actually has more months that fall in the 2014 calendar year than in the 2015 calendar year.
7. Calculate the company's ROA for fiscal 2014 and 2013. Did it increase or decrease or stay the same?