Refer to the financial statements of American Eagle Outfitters in Appendix B at the end of this

Question:

Refer to the of American Eagle Outfitters in Appendix B at the end of this book. Required:
1. Is the company a corporation, a partnership, or a sole proprietorship? How do you know?
2. The company shows on the that inventories are worth $278,972,000. Does this amount represent the expected selling price? Why or why not?
3. List the types of current obligations this company has. You need not provide the amounts.
4. Compute the company's current ratio and explain its meaning.
5. How much cash did the company spend on purchasing property and equipment each year (capital expenditures)? Where did you find the information?
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... 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...