Financial information for American Eagle is presented in Appendix A at the end of the book.

Required:

1. For the most recent year, what is the amount of inventory in the balance sheet? What does this amount represent?

2. American Eagle refers to its cost of goods sold using a different name. What is it?

3. For the most recent year, what is the amount of cost of goods sold in the income statement? What does this amount represent?

4. Calculate American Eagle’s inventory turnover ratio and average days in inventory for the most recent year.

5. Calculate American Eagle’s gross profit ratio for each of the three years. Do you notice any trend?

6. For the most recent year, calculate American Eagle’s ratio of operating expenses to net sales.

 

 

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AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets Fobruary 3. January 26, 2018 2017 in thounands, except per ahere amounts) Assets Current assets: Cash and cash equivalents Merchandise inventory Accounts receivable, net Prepaid expenses and other Total current assets 413,613 398,213 78,304 78,400 968,530 724,239 46,666 15,070 9,344 52,464 1816,313 378,613 358,446 86,634 77.536 901,229 707,797 49,373 14,887 49,250 60,124 1,782.660 Property and equipment, net of accumulated depreciation Intangible assets, net of accumulated amortization Goodwill Defemed income taxes Other assets Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued compensafion and payroll taxes Accrued rent Accrued income and other taxes Unredeemed gift cards and gift certificates Current portion of deferred lease credits Other liabilities and accrued expenses 236,703 54,324 83,312 12,781 52,347 11,203 34,551 485 221 246,204 54,184 78,619 12,220 52,966 12,780 36.810 493,783 Total current kablities Non current liabilities Deferred lease credits Non-current accrued income taxes Other non-current liabilities Total non-curent liabilities Commitments and contingencies Stockholders' equity Prefened stock, $0.01 par value, 5,000 shares authorized, none issued and outstanding Common stock, $0.01 par value; 600,000 shares authorized: 249,566 shares issued, 177,316 and 181,886 shares.outstanding, respectively Contributed capital Accumulated other comprehensive loss, net of tax Retained earnings Treasury stock, 72,250 and 67,680 shares, respectively, at cost Total stockholders' equity Total labilities and stockholders equity 47,977 7.269 20,055 45,114 4,537 34,657 84,308 84 301 2.496 593,770 (30,795) 1,883,592 (1.202.272) 1,246,791 1,816.313 2,496 603,890 (36,462) 1,775,775 (1,141.130) 1,204.569 1.782 660 AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets Fobruary 3. January 26, 2018 2017 in thounands, except per ahere amounts) Assets Current assets: Cash and cash equivalents Merchandise inventory Accounts receivable, net Prepaid expenses and other Total current assets 413,613 398,213 78,304 78,400 968,530 724,239 46,666 15,070 9,344 52,464 1816,313 378,613 358,446 86,634 77.536 901,229 707,797 49,373 14,887 49,250 60,124 1,782.660 Property and equipment, net of accumulated depreciation Intangible assets, net of accumulated amortization Goodwill Defemed income taxes Other assets Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued compensafion and payroll taxes Accrued rent Accrued income and other taxes Unredeemed gift cards and gift certificates Current portion of deferred lease credits Other liabilities and accrued expenses 236,703 54,324 83,312 12,781 52,347 11,203 34,551 485 221 246,204 54,184 78,619 12,220 52,966 12,780 36.810 493,783 Total current kablities Non current liabilities Deferred lease credits Non-current accrued income taxes Other non-current liabilities Total non-curent liabilities Commitments and contingencies Stockholders' equity Prefened stock, $0.01 par value, 5,000 shares authorized, none issued and outstanding Common stock, $0.01 par value; 600,000 shares authorized: 249,566 shares issued, 177,316 and 181,886 shares.outstanding, respectively Contributed capital Accumulated other comprehensive loss, net of tax Retained earnings Treasury stock, 72,250 and 67,680 shares, respectively, at cost Total stockholders' equity Total labilities and stockholders equity 47,977 7.269 20,055 45,114 4,537 34,657 84,308 84 301 2.496 593,770 (30,795) 1,883,592 (1.202.272) 1,246,791 1,816.313 2,496 603,890 (36,462) 1,775,775 (1,141.130) 1,204.569 1.782 660

Answer rating: 100% (QA)

solution Step 1 of 13 Inventory Inventory are goods which are not sold by company and are still available with company at end of year These goods are ... View the full answer