Financial information for American Eagle is presented in Appendix A$.$

Required:

$1-$a$.$ For the most recent year, what is the amount of inventory in the balance sheet?

$1-$b$.$ What does the amount of inventory represent?

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

$3-$a$.$ For the most recent year, what is the amount of cost of goods sold in the income statement?

$3-$b$.$ What does the amount of cost of goods sold represent?

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

$5-$a$.$ Calculate American Eagle's gross profit ratio for each of the $3$ years.

$5-$b$.$ Do you notice any trends?

For the most recent year, calculate American Eagle's ratio of operating expenses $($other than cost of goods sold$)$ to net sales. $($Hint:

These operating expenses include those amounts subtracted from gross profit to calculate operating income.$)$