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

Question:

Refer to the of American Eagle Outfitters in Appendix B at the end of the book. Required:
1. State the amount of the largest expense on the income statement for the year ended January 31. 2015, and describe the transaction represented by .the expense.
2. Assuming that all net sales are on credit, how much cash did American Eagle Outfitters collect from customers?( Use a T-account of to infer collection.)
3. A shareholder has complained that "more dividends should be paid because the company had net earnings of $80,322,000. Since this amount is all cash, more of it should go to the owners." Explain why the shareholder's assumption that earnings equal net cash inflow is valid. If you believe that the assumption is not valid, state so and supports your position concisely.
4. Describe and contrast the purpose of an income statement versus a balance sheet.
5. Compute the company's net profit margin for each year presented. Explain its meaning.
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... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...