1.State the amount of the largest expense on the income statement for the year ended January 31,...
Question:
1. State the amount of the largest expense on the income statement for the year ended January 31, 2009. and describe the transaction represented by the expense.
2. Assuming that all net sales are on credit, how much cash did American Eagle Outfitters collect from customers? (Hint: Use a T-account of accounts receivable to infer collection.)
3. A shareholder has complained that "more dividends should be paid because the company had net earnings of $1 79.061.000. Since this amount is all cash, more of it should go to the owners." Explain why the shareholder's assumption that earnings equal net cash inflow is valid. If you believe that the assumption is not valid, state so and support your position concisely.
4. Describe and contrast the purpose of an income statement versus a balance sheet.
5. Compute the company's total asset turnover for the year ended January 31, 2009. Explain its meaning.
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson