1. The company uses lower of cost or market to account for its inventory. At the end of the year, do you expect the company to write its

2. What method does the company use to determine the cost of its inventory?

Where did you find this information?

3. If the company overstated ending inventory by $10 million for the year ended January 31, 2012, what would be

4. Compute the inventory turnover ratio for the current year.
Fiscal Year Ended	Cost of Goods Sold /	Average Inventory	= Inventory Turnover
1/31/2012
What does an inventory turnover ratio tell you?

The accompanying notes are an integral part of these consolidated financial statements URBAN OUTFITTERS, INC. Consolidated Statements of Income (in thousands, except share and per share data) Fiscal Year Ended January 31 2011 2012 2010 Net sales Cost of sales, including certain buying, distribution and S 2,473,801 2,274,102 S 1,937,815 1,613,265 860,536 575,811 284,725 5,120 553 1,337,482 936,620 522,417 414,203 4,669 486 1,151,670 786,145 447,161 338,984 6,290 463 (1,331) 344,406 124,513 S 219,893 cy costs Gross profit Selling, general and administrative expenses Income from operations Interest income Other income Other expenses (2,150) Income before income taxes Net income Basic 288,831 103,580 $185,251 417,208 144,250 S 272,958 Income tax expense Net income per common share 1.20 1.19 1.64 1.60 1.31 1.28 Diluted Weighted average common shares outstanding Basic Diluted 154,025,589 156,191,289 166,896,322 170,333,550 168,053,502 171,230,245