1. For the most recent year, what is the amount of inventory in the balance sheet? (Enter answers in thousands of dollars.)

-Amount of Inventory:

3. For the most recent year, what is the amount of cost of goods sold in the income statement? (Enter answers in thousands of dollars.)

-Cost of good sold:

4. Calculate American Eagles inventory turnover ratio and average days in inventory for the most recent year. (Use 365 days. Round your answers to 1 decimal place.)

-Inventory turnover ratio:

-Average days in inventory:

5-a. Calculate American Eagles gross profit ratio for each of the three years. (Round your answers to 1 decimal place.)

2018:

2017:

2016:

5-b. Do you notice any trend?

• Incresing trend

• Decresing trend

• No trend

6. For the most recent year, calculate American Eagles ratio of operating expenses (other than cost of goods sold) to net sales. (Round your answer to 1 decimal place.)

-Ratio:

AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets February 3 2018 January 28, 2017 s $ Anthousands, excet per share amounts) Assets Current assets: Cash and cash equivalents Merchandise inventory Accounts receivable, net Prepaid expenses and other Total current assets Property and equipment, net of accumulated depreciation Intangible assets, net of accumulated amortization Goodwill Deferred income taxes Other assets Total assets 413,613 398,213 78,304 78,400 968,530 724,239 46,666 15,070 9,344 52,464 1.816,313 378,613 358,446 86,634 77,536 901 229 707,797 49,373 14,887 49,250 60,124 1,782,660 $ $ $ 236,703 54,324 83,312 12,781 52,347 11,203 34,551 485,221 246,204 54,184 78,619 12,220 52,966 12,780 36,810 493,783 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued compensation and payroll taxes Accrued rent Accrued income and other taxes Unredeemed gift cards and gift certificates Current portion of deferred lease credits Other liabilities and accrued expenses Total current liabilities Non-current liabilities: Deferred lease credits Non-current accrued income taxes Other non-current liabilities Total non-current liabilities Commitments and contingencies Stockholders' equity Preferred stock, $0.01 par value; 5,000 shares authorized: none issued and outstanding Common stock, 50.01 par value; 600,000 shares authorized; 249,566 shares issued: 177,316 and 181,886 shares outstanding, respectively Contributed capital Accumulated other comprehensive loss, net of tax Retained earnings Treasury stock, 72,250 and 67,680 shares, respectively, at cost Total stockholders' equity Total liabilities and stockholders' equity 47,977 7,269 29,055 84,301 45,114 4.537 34,657 84,308 2,496 593.770 (30,795) 1,883,592 (1,202,272 1.246,791 1,816,313 2.496 603,890 (36,462) 1,775,775 (1,141,130) 1,204,569 1,782,660 $ Refer to Notes to Consolidated Financial Statements A-5 APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Operations February 3, 2018 3,795,549 For the Years Ended January 28, 2017 $ 3,609,865 January 30, 2016 3,521,848 $ In thousands, except per share amounts) Total net revenue Cost of sales, including certain buying, occupancy and warehousing expenses Gross profit Selling, general and administrative expenses Impairment and restructuring charges Depreciation and amortization expense Operating income Other (expense) income, net Income before income taxes Provision for income taxes Income from continuing operations Discontinued operations, net of tax Net income 2,425 044 1,370,505 879,685 20,611 167 421 302,788 ,615) 287.173 83,010 204,163 2,242,938 1,366,927 857,562 21,166 156,723 331,476 3786 335,262 122,813 212,449 2,219,114 1,302,734 834,700 0 148, 156 319,878 1,993 321,871 108,580 213,291 4,847 218. 138 204,163 $ 212,449 1.15 $ 1.17 $ Basic income per common share: Income from continuing operations Discontinued operations Basic net income per common share 1.10 0.02 1.15 S 1.17 1.12 1.13 $ 1.16 $ Diluted income per common share: Income from continuing operations Discontinued operations Diluted net income per common share 1.09 0.02 1.11 1.13 $ 1.16 Weighted average common shares outstanding - basic Weighted average common shares outstanding-diluted 177,938 180, 156 181,429 183,835 194,351 196,237 Refer to Notes to Consolidated Financial Statements A-6 APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Comprehensive Income February 3, 2018 204,163 For the Year Ended January 28, 2017 $ 212,449 January 30, 2016 218,138 $ Net income Other comprehensive gain (loss): Foreign currency translation gain (loss) Other comprehensive gain (loss) Comprehensive income 5,667 5,667 209,830 (6.594) (6,594) 205,855 (19,924 (19.924) 198,214 Refer to Notes to Consolidated Financial Statements A-8 APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Cash Flows February 3, 2010 For the Years Ended January 28 2017 January 30, 2010 204,163 $ 212,449 $ 218,138 4.847) 213,291 204,163 $ 212.449 $ 169.473 16,890 44,312 (5,616) 158,174 29.137 14,838 (835) 20,576 148,858 34,977 4,680 2.977 (9.422) (35,912) 8,837 (399) 5,317 (16,663) (874) 984 In thousands Operating activities Not income Gain from discontinued operations, net of tax Income from continuing operations Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization Share-based compensation Doferred income taxes Foreign currency transaction (gain) loss Loss on impairment of assets Gain on sale of assets Changes in assets and abilities: Merchandise inventory Accounts receivable Prepaid expenses and other Other assets Accounts payable Unredeemed gift cards and gift certificates Deferred lease credits Accrued compensation and payroll taxes Accrued income and other taxes Accrued liabilities Total adjustments Net cash provided by operating activities from continuing operations Investing activities Capital expenditures for property and equipment Acquisitions and purchase of long-lived assets in business combination Proceeds from sale of assets Acquisition of intangible assets Net cash used for investing activities from continuing operations Financing activities: Payments on capital losses and other Repurchase of common stock as part of publicly announced programs Repurchase of common stock from employees Net proceeds from stock options exercised Excess tax benefit from share-based payments Cash dividends paid Net cash used for financing activities from continuing operations Effect of exchange rates on cash Cash flows of discontinued operations Net cash used for operating activities Net cash used for investing activities Net cash used for financing activities Effect of exchange rates on cash Net cash used for discontinued operations Net increase (decrease) in cash and cash equivalents Cash and cash equivalents beginning of period Cash and cash equivalents - end of period (53,613) (7.705) (332) (6,705) 52,347 4,465 (5,229) (25,809) (10.695) (15.467) 153 147 365,596 (22.259) (10,093) (7.027) (10,017 (3.189) 755 (4.099) 34,234 (17,615) (14.133 128 627 341,918 1,289 565 2,060 190,263 394 426 (169.469) (161,494) 12.681) (172.150) (153,256) (10.442) 12.579 (2382) (153 (1528 (163 022) (4,375) (3,384) (87.682) (12,513) 3,355 (7.635) (227.071) (5,163 7.283 657 97237) (329,166 (3,070) (7,032) 16.260 783 (90.680) (85 064) 1.038 (88.548) (188.772) 1.490 (6.805) 35,000 370.613 413,613 118,546 260.067 378.613 (6 805) (150,630) 410,697 260.067 Refer to Notes to Consolidated Financial Statements 6. Accounts Receivable, net Accounts receivable, net are comprised of the following (In thousand Franchise and license receivable Merchandise sell-offs and vendor receivables Credit card program receivable Tax refunds Landlord construction allowances Gift card receivable Other items Total February 3, January 28, 2018 2017 32,930$ 35,983 15,742 20,080 9,544 11,869 8,271 4,731 5,605 2,412 1,799 6,567 4413 4.983 78,304 86,634 Allowance for uncollectible receivables of $20.4 million and 54.2 million are included within Accounts receivable, net as of February 3, 20 January 28, 2017, respectively 7. Property and Equipment Property and equipment consists of the following February 3, January 28, (In thousands) 2018 2017 Land 17,910 $ 17,910 Buildings 206,505 204,890 Leasehold improvements 630,725 606,522 Fixtures and equipment Construction in progress 1,143,140 1,028,117 25,595 26,858 Property and equipment, at cost 2,023,8755 1,884, 297 Less: Accumulated depreciation (1 299,636) (1,176,500) Property and equipment, net 724 239 $ 707 797 Depreciation expense is summarized as follows: $ A-14 APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report in thousands) Depreciation expense February 3, 2018 158 969 For the Year Ended January 28, 2017 152 644 January 30, 2010 140 616 A- APPENDIX A American Eagle Outfitters, Inc., 2017 Annual Report A summary of fixed minimum and contingent rent expense for all operating teases follows: For the Years Ended February 3. January 28 January 30 (in thousands) 2018 2017 2016 Store rent: Fixed minimum $ 298,458 $ 286,850 $ 282,300 Contingent 9,566 8,519 9,035 Total store rent, excluding common area maintenance charges, real estate taxes and certain other expenses $ 308,025 $ 295,369 S 291,335 Offices, distribution facilities, equipment and other 26,960 18,172 16,063 Total rent expense $ 334,985 $ 313,541 $ 307,398 In addition, the Company is typically responsible under its store, office and distribution center leases for tenant occupancy costs, includi maintenance costs, common area charges, real estate taxes and certain other expenses. The table below summarizes future minimum lease obligations, consisting of fixed minimum rent, under operating teases in effect at February 2018 (In thousands) Fiscal years 2018 2019 2020 2021 2022 Thereafter Total Future Minimum Lease Obligations $ 286,300 $ 252, 150 $ 229,056 $ 202,605 $ 168,993 $ 435,616 $ 1,574,720