AP62 Financial information for American Eagle is presented in Appendix Aat the end of the book. 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?