Refer to the financial statements of Abercrombie & Fitch and Aeropostale that are supplied with this text.

Question:

Refer to the of Abercrombie & Fitch and Aeropostale that are supplied with this text.
Required:
1. What amounts do Abercrombie & Fitch and Aeropostale report for inventories in their consolidated balance sheets at January 30, 2010, and January 31, 2009?
2. Do Abercrombie & Fitch and Aeropostale use the same method to value their inventories?
3. What amount does Abercrombie & Fitch report for cost of goods sold for the years ending January 30, 2010; January 31, 2009; and February 2, 2008? What amount does Aeropostale report for cost of goods sold for the years ending January 30, 2010; January 31, 2009; and February 2, 2008?
4. Compute the gross profit and s for fiscal year ending January 30, 2010, for each company. (Note: Round answers to two decimal places.) What do these ratios tell you about the success of each company in managing and controlling their inventory?
5. Do Abercrombie & Fitch and Aeropostale use the lower of cost market method to account for their inventories? By what amount have they written inventories down in the fiscal year ending January 30, 2010?
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...