Problem AP 7-2 Financial information for american eagle is presented in appendix a

1. The summaray of significan accounting policies is located in footnote 2 to the financial statements. Located the section on property and equipment. what depreciation menthod does american eagle use? what are the estimated useful lived for buildings, leasehold improvements, and fixtures and equipment?

2. Find footnote 7 entitled property and equipment. what are the cost and the book value of property and equipment? what is the trend in depreciation expense for the past three years?

3. Find footnote 9 entitled leases. Retail stores, like american eagle, tend to lease rather than buy their stores. what is the most common term for the store leases? what are the future minimum lease obligations under operating leases at january 30, 2010?

AP 7-3 finanacial information for the buckle is presented in appendix b

1. the summary of significant accounting policies is located in footnote A to the financial statements. located the section on property and equipment. what depreciation method does the buckle use? what are the estimated useful lived for buildings, leasehold improvements, and property and equipment?

2. find footnote D entitled property and equipment. what is the cost of property and equipment? what is the trend in property and equipment for the past two years?

3. Find footnote H entitled to commitments . Retail stores, like the buckle, tend to lease rather than buy their stores. What is the most common term for leases? what are the future minimum rental commitments under opperating leases at february 6, 2010?

Problem AP7-4 Financial information for american eagle is presented in appendix A at the end of the book and financial information for buckle is presented in appendix b

1. calculate american eagles return on assetss, profit margin, and asset turnover ratio.

2. calculate buckles return on assets, profit margin, and asset turnover ratio

3. Which company is doing better based on return on assets? which company has the higher profit margin? which company has the higher asset turnover?

Calculate ratios for 2010 only. use only the 2010 balance sheet numbers ( not the average of 2009 and 2010)

Calculate all Ratios to 4 decimal places. Do not convert to percentages