Finding Financial Information Refer to the financial statements of American Eagle Outfitters given in Appendix B at

Question:

Finding Financial Information Refer to the of American Eagle Outfitters given in Appendix B at the end of this book.
Required:
1. How much inventory does the company hold at the end of the most recent year?
2. Estimate the amount of merchandise that the company purchased during the current year.
3. What method does the company use to determine the cost of its inventory?
4. Compute the for the current year. What does an tell you?

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...