1-a. Calculate the return on equity for American Eagle and Buckle for the most recent year. 1-b. Which company is more profitable? 2. Determine the amount reported for basic earnings per share (or net income per share) for the most recent year for each company. Basic earnings per share are provided for each company near the bottom of the income statement. 3. Determine the amount of dividends per share for the most recent year for each company. (Hint: Find dividends per share in the statement of stockholders equity). Using your answers for requirement 2, which company has a higher ratio of cash dividends to earnings? Which company has more treasury stock purchases?

AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets (In thousands, except per share amounts) Assets Current assets: Cash and cash equivalents Short-term investments (available for sale) Merchandise inventory Accounts receivable, net Prepaid expenses and other Total current assets Property and equipment, at cost, net of accumulated depreciation Operating lease right-of-use assets Intangible assets, net, including goodwill Non-current deferred income taxes. Other assets Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Current portion of operating lease liabilities Accrued income and other taxes Accrued compensation and payroll taxes Unredeemed gift cards and gift certificates Other current liabilities and accrued expenses Total current liabilities Non-current liabilities: Non-current operating lease liabilities 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, $0.01 par value; 600,000 shares authorized; 249,566 shares issued; 166,993 and 172,436 shares outstanding, respectively Contributed capital Accumulated other comprehensive loss, net of tax Retained earnings Treasury stock, 82,573 and 77,130 shares, respectively, at cost Total stockholders' equity Total liabilities and stockholders' equity February 1, 2020 February 2, 2019 $ 361,930 $ 333,330 55,000 92,135 446,278 424,404 119,064 93,477 65,658 102,907 1,047,930 1,046,253 735,120 1,418,916 742,149 53,004 22,724 58,167 14,062 50,985 42,747 $ 3,328,679 $ 1,903,378 $ 285,746 $ 240,671 299,161 9,514 20,064 43,537 82,173 56,974 53,997 56,824 145,740 751,756 542,645 1,301,735 27,335 73,178 1,329,070 73,178 2,496 577,856 (33,168) 2,108,292 2,496 574,929 (34,832) (1,407,623) 2,054,654 (1,309,692) 1,247,853 1,287,555 $ 3,328,679 $ 1,903,378