Financial information for American Eagle is presented in Appendix A at the end of the book. Required:

Question:

Financial information for American Eagle is presented in Appendix A at the end of the book.

Required:
1. Determine the amounts American Eagle reports for total assets, total liabilities, and total stockholders’ equity in the for the most recent year. Verify that the basic accounting equation balances.
2. American Eagle refers to its income statement using another name. What is it?
3. Determine the amounts American Eagle reports for net sales and net income in its income statement for the most recent year.
4. For investing activities, what are the largest inflows and largest outflows for the most recent year reported in the statement of cash flows? For financing activities, what are the largest inflows and largest outflows?
5. Who is the company’s auditor? (See the Report of Independent Registered Public Accounting Firm.) What does the report indicate about the amounts reported in the company’s financial statements?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...