Ralph Lauren Corporation is a global leader in the design marketing. and distribution of premium lifestyle products, including men's women's and children's apparel. Below are selected financial statements taken from a recent 10-K filing.

Required:

Use the information in the financial statements to answer the following questions.

1. Does the company use the single-step or multiple-step format to present its income statements?

2. What are restructuring costs? Why are they reported as a line item?

3. Describe the fiscal 2014 restructuring and other costs. (This will require access to the company's 10-K which you can find using EDGAR on the Internet at www.sec.gov, or on the investor relations page at the company website: www.ralphlauren.com.)

4. Using the information you find in the company's 10-K, describe the 2013 asset impairments.

5. Explain the difference between bask and diluted earnings per share.

6. The company chose to report comprehensive income in two consecutive statements, a statement of income and a statement of comprehensive income. What other alternative did the company have to report the information in these two statements?

7. What "other comprehensive items (OGD" did the company report in fiscal 2014? What other possible transactions would be reported as OGI if the company had experienced those transactions?

8. What method does the company use to report net cash provided by operating activities? What other methods) could the company have used?

9. What is the largest cash outflow from investing activities?

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RALPH LAUREN CORPÓRATION CONSOLIDATED STATEMENTS OF INCOME Fiscal Years Ended March 30, 2013 (millions, except per share data) $6,763 March 29 2014 March 31 2012 $7,284 166 7,450 (3,140) 4,310 $6,679 181 6,860 2.862 3,998 Net sales Licensing revenue Net revenues Cost of goods sold Gross profit Other costs and expenses: Selling, general, and administrative expenses Amortization of intangible assets Gain on acquisition of Chaps Impairments of assets Restructuring and other costs 182 6,945 2,789) 4,156 (3,142) (35) (2,971) (27) (2,916) (29) (19) (12) (18) (3,180) 1,130 (20) (12) (2,959) 1,039 (24) Total other costs and expenses, net (3,029) 1,127 (12) (22) Operating income Foreign currency losses Interest expense Interest and other income, net Equity in losses of equity-method investees Income before provision for income taxes Provision for income taxes Net income (10) 1,089 (339) $ 750 1,096 (320) 776 1,015 (334) S 681 Net income per common share: Basic $ 8.55 S 8.21 7.35 Diluted $ 8.43 $ 8.00 7.13 RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Years Ended March 29, 2014 March 30, March 31, 2012 2013 (millions) $750 $776 $681 Net income Other comprehensive income (loss), net of tax Foreign currency translation adjustments Gains (losses) on derivatives Net unrealized gains (losses) on available-for-sale investments Los 52 (27) (93) (13) (50) 32 4. ses on defined benefit plans Other comprehensive income (loss), net of tax 20 (103) (19) Total comprehensive income $796 $647 $662 RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Years Ended March 30 2013 (millions) March 29, 2014 , March 31, 2012 Cash flows from operating activities: Net income $ 776 750 S 681 Adjustments to reconcile net income to net cash provided by operating activities 258 233 225 (15) Depreciation and amortization expense Deferred income tax expense (benefit) Equity in losses of equity-method investees Non-cash stock-based compensation expense Gain on acquisition of Chaps Non-cash impairment of assets Other non-cash charges, net Excess tax benefits from stock-based compensation arrangements 10 93 (16) 78 19 (34) (41) (40) Changes in operating assets and liabilities Accounts receivable Inventories Prepaid expenses and other current assets Accounts payable and accrued liabilities Income tax receivables and payables Deferred income Other balance sheet changes, net (104) (77) (56) 43 59 (18) (34) 82 (68) 4 (57) (13) (30) 25 1,019 (148) (39) 122 107 885 Net cash provided by operating activities Cash flows from investing activities Capital expenditures Purchases of investments Proceeds from sales and maturities of investments (272) (1,360) 1,394 (12) (390) (1,067) (276) (876) 1,058 (22) 3 1,011 Acquisitions and ventures, net of cash acquired (40) Change in restricted cash deposits Net cash used in investing activities Cash flows from financing activities: (488) (249) Proceeds from issuance of debt Repayment of debt Payments of capital lease obligations Payments of dividends Repurchases of common stock, including shares surrendered for tax withholdings Prepayments of common stock repurchases Proceeds from exercise of stock options Excess tax benefits from stock-based compensation arrangements Payment on interest rate swap termination Other financing activities 108 (108) (74) (419) 61 40 300 (269) (149 (558) 52 34 (128) (497) (50) 49 Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (599) (595) (408) (177) 974 $ 797 302 672 $ 974 219 453 $ 672