Financial information for American Eagle is presented in Appendix A. Required:

1. What does the Report of Independent Registered Public Accounting Firm indicate about American Eagles internal controls? 2. In the summary of significant accounting policies, how does American Eagle define cash equivalents? 3-a. What is the amount of cash reported in the two most recent years? 3-b. How much has cash increased/decreased from the previous year? 4. Determine the amounts American Eagle reports for net cash flows from operating activities, investing activities, and financing activities in its statement of cash flows for the most recent year. What are net cash flows for the year? 6. What is American Eagles ratio of cash to noncash assets?