3 2 point Refer to the financial statements of American Eagle Outfitters given in Appendix B. Required: 1. How much inventory does the company hold at the end of the most recent year? (Enter your answer in thousands.) 2. Estimate the amount of merchandise that the company purchased during the current year. (Hint: Use the cost of goods sold equation) (Enter your answer in thousands.) 3. What method does the company use to determine the cost of its inventory? 4. Compute the inventory tumover ratio for the current year . (Round your intermediate calculations to the nearest whole dollar and your final answer to 2 decimal places.) Bpped eBook 1 Merchandise inventory 2 Purchased during the current year 3. Method to determine the cost of inventory 4 Inventory tumover thousand thousand Print BE AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets February 2018 January 28 2017 $ In thousands oest per a mounts 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 1.762,660 5 $ $ 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 35 810 493 783 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 lase credits Other liabilities and accrued expenses Total current linbilities Non-current labis Deferred lease credits Non-current accrued income taxes Other non-current linbates Total non current liabilities Commitments and contingencies Stockholders equity Preferred stock. 50.01 par value 5,000 shares authorized: none issued and Outstanding Common stock, 30.01 par value, 600.000 shares authorized 249,566 shares swed: 177,316 and 181,880 shares outstanding, respectively Contributed capital Accumulated other comprehensive loss.net of tax Retained earnings Trentur dock 72.250 and 67 680 shares, tenpectively, con Total stockholders equity Tot ons and Mockholders equity Refer to Notes to Consolidated Financial Statements 47977 7.269 29,055 34 301 45.114 4,537 34657 84308 2490 593.770 (30,795) 1883.592 2022123 1246.791 1 316 313 2.490 003.890 (36.462) 1.775,775 (1.141.130) 120409 1782.650 S AMERICAN EAGLE OUTFITTERS, INC Consolidated Statements of Operations January 30 February 2011 $ 3,795,549 For the Year Ended January 2012 $ 3.609.885 $ 3.521.848 In thousands categt par 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 (15,615) 287.173 83 010 204.163 2242938 1.365.927 857,562 21,166 156.723 331,476 3,786 335.262 122 813 212.449 2.219.114 1.302734 834,700 0 148.156 319,878 1993 321,871 108,580 213.291 4.347 216.138 $ 204,163 $ 212.449 $ 1155 1.17 S Basic income per common share Income from continuing operations Discontinued operations Basie net income per common share 1.10 002 1.12 1.155 1.17 $ 1.13 $ 16 $ Diluted income per common share Income from continuing operations Discontinued operations Dived net income per common share 100 0.02 1.11 $ 1.16 $ 194351 181,429 183 835 Weighted average common shares outstanding basic 177.938 Weighted average common shares outstanding.luled 160.156 Refer to Notes to Consolidated Financial Statements AMERICAN EAGLE OUTFITTERS, INC Consolidated Statements of Comprehensive Income February For the Year Ended January 2017 S 212.449 yo 2015 218.13 204.183 $ in and Net income Other comprehensive gain (loss Foreign currency translation gain (los) Other comprehensive gain (los) Comprehensive income 5.657 5667 209 830 15.594 16594 205.8553 (19924 119.924) 198214 S 5 Refer to Notes to Consolidated Financial Statements Contributed Capital $ 569,675 31,937 Retained Earrings 5 1.543.085 Treasury Comprehensive Stockholders Stock Income (Loss) Ecu $ 1965 566) 5 19.9445 1.139,746 31,937 (227,071) (227.071) 111 (13.237 2,332) 218,138 (5.163) 26.461 (5.163) 10.892 218,138 (19.924) (19,924) 2445 590,820 27877 (99,624) $1,650,267 5 $ 1,171,339) 5 29.868) 5 (97.179) 1,051376 2777 in thousands, except per share Outstanding Common amount 10 Stock Balance at January 31, 2015 194,516 $ 2,496 Stock awards Repurchase of common stock as part of publicly announced programs (15.563) Repurchase of common stock from employees (324 Ressuance of treasury stock 1505 Net income Other comprehensive loss Cash dividends and dividend equivalents (50 50 share Balance at January 30, 2016 180,135 52,496 Stock awards Repurchase of common stockas part of publicly announced programs Repurchase of common Mock from employees Reissuance of treasury stock 2206 Not income Other comprehensive Cash dividends and dividend equivalents (50 50 per sh Balance January 28, 2017 181.306 Stock dwards Repurchase of common stock as part of publicly announced programa 40.000) Repurchase of common stock from employees (87) Ressuance of treasury Stock 2.301 Netcome Other contenentives Cash dividends and dividend equivalents (50 per (455) 11 17.002) 37,241 (17.227 2.621) 212.449 Bill 7,032) 17.173 149 (6.5647 16.594) 191120) 2440 803.390 17 202 $ 1,775,775 $(1.141.030) 136.462) 100.680 1,204 569 17.202 (87.672) (87.672) (12.513) 30.00 29.632) 15.488) 204,163 1111 (12513) 3.923 204.163 5667 2.310 190.858 593.770 51.61392 30.292.272)5 Balance at February 3, 2016 177 3165241 5 1.246,711 (20.795) 5 (1) 600,000 authorized, 249,566 issued and 177,316 outstanding, 50.01 par value common stock at February 3, 2018, 600,000 authonzed, 249,566 issued and 181,886 outstanding. $0 01 par value common stock at January 28, 2017 600,000 authorized, 249,566 issued and 180,135 outstanding. $0.01 por value common stock at January 30, 2016; 600,000 authorized, 249,566 issued and 194.516 outstanding. 50,01 par value common stock at January 31, 2015. The Company has 5,000 authorized, with none issued or outstanding, 50.01 par value preferred stock for all periods presented (2) 72250 shares, 67,680 shares and 69,431 shares at February 3, 2018 January 28, 2017 and January 30, 2016 respectively. During Fiscal 2017, Fiscal 2016, and Fiscal 2015, 2.301 shares. 2,206 shares, and 1.506 shares, respectively were reissued from treasury stock for the issuance of share-based payments AMERICAN EAGLE OUTFITTERS, INC Consolidated Statements of Cash Flows February 2018 For the Year Ended January 25 2017 January 30 2010 $ 204,163 $ 212,449 $ 218.138 14342 213.294 $ 204,163 $ 212449 $ 189.473 16,890 44,312 15,616) 158,174 29.137 14,830 (235 20.576 140858 34.077 4.680 2977 19422) 1359123 8837 090) 5,317 (10.603) (876) 984 1,200 153,6131 705) (332) 5.705) $2347 4,465 A5,229) 25,109) (10.095) (154673 153167 122.250) (10093 17.027) (10.017 1891 755 4.0901 34234 (17,615) (141333 128 627 341010 565 2.000 100 200 394426 thousands Operating activities Net income Gain from d.continued operation, net of tax Income from continuing operations Adjustments to reconcile net income to net cash provided by operating activiti Depreciation and amortization Share-based compensation Deferred income taxes Foreign currency transaction (anos Lots on impartment of Gain on sale of assets Changes in assets and Babies Merchandise inventory Accounts receivable Prepaid expenses and other Other assets Accounts payable Unredeemed cards and gift certificat Deferred loose credits Accrued compensation and payroll Accredite and other are Accruedia Total time Net cash provided by operating activities from continuing operations Investigaci Capital expenditures for property and equipment Acquisitions and purchase of longives in business combination Proceeds from sale of assets Acquisition of intangible Net cash used for investing activities from continuing operations Find activities Payments on capital cases and other Repurchase of common stock as part of pubidy announced programa Repurchase of common stock from employees Net proceeds from stock options are Excess to benefit from share based payments Carchividends Netcash used for financing activities from continuing operations Effectings on cash Cash flow of discontinued portions Netched for operating at Netcash doing acts Nel casted for inancing active Effect of exchange rates on.ch Not cash used for continued operations Net increase (decrease in cash and cash equivalents Cash and cash valents regning period Cash and costs and (109 400 (161496) (151.250 (104421 12.570 2382 159.5013 2.601 (172.150 (1.526 163,022) 375) (314 (87.682) (12513) 3.355 17,032) 120 01635) 210 5.100 72 639 23 221166 0023 AD (1772) 1036 16.805 118 5 (110.630 35,000 37:01 1513 Refer to Notes to Consolidated Financial Statements 2010 Item 6. Selected Consolidated Financial Data The following Selected Consolidated Financial Data should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations, included under Item 7 below and the Consolidated Financial Statements and Notes thereto, included in Hem 8 below. Most of the selected Consolidated Financial Statements data presented below is derived from our Consolidated Financial Statements, if applicable, which are filed in response to Item 8 below. The selected Consolidated Statement of Operations data for the years onded January 31, 2015 and February 1, 2014 and the selected Consolidated Balance Sheet data as of January 30, 2016, January 31, 2015 and February 1, 2014 are derived from audited Consolidated Financial Statements not included herein For the Years Ended I thousands, Broopper share amounts, tos and February January 21, horanca maton January 30 Jary 3 February 2017 2016 2015 2014 Summary of Operations (2) Total net revenue $ 3,795,549 $ 3,609,865 $3,521,848 3,282,867 Comparable sales increase (decrease) (3) $ 3,305,802 4% 3% 7 (5% 16 Gross profit $ 1370,505 $ 1,366,927 $ 1,302,734 $ 1,154,674 $1.113.999 Gross profit as a percentage of net sales 38.1% 37.95 37,0% 352% 33.7% Operating income 5 302,788 $ 331.4765 319,578 5 155,765 5 141,055 Operating income as a percentage of niet Sales 8.09 9.2% 9.1% 4.7% 4.3% Income from continuing operations $ 204,163 $ 212 449 213,2915 88.787 $ 82.983 Income from continuing operations as a percentage of net sales 5.4% 5.9% 6.1% 2.6% 2.5 Per Share Results Income from continuing operations per common share-basic 1.155 1.105 0.46 $ 043 Income from continuing operations per common share-outed 1.13 1.165 1,09 $ 0.46 $ 0.43 Weighted average common shares outstanding basi 177,938 181420 194,351 194.437 192.802 Weighted average common shares outstanding - duted 180.156 183,835 100,237 195,135 194475 Cash dividends per common share $ 0.505 0.50 $ 0.505 0.50 0.38 Balance Sheet Information Total cash and short-term investments 5 413,613 5378.6935 200.067 410.0973 $28.035 Long-term investments $ $ $ $ 5 Total 5 1616,3133 1782.660 1612.246 5 1.606.900 5 1.6.184 Long & short-term debt $ - 5 $ $ Stockholders equity $ 1.246.701 $1.204,569 $ 1.051.376 $ 1,139.746 $ 1.166.178 Working capital 483,300 $ 407.646 S 259,693 $ 368 947 $ 402.604 Current ratio 2.00 1.83 1.50 100 2.11 Average return on stockholders' equily (5) 16.7 100 10.9% 7.09 70% Other Financial Information (2) Total soron at you and 1047 1,050 1047 1050 1.000 Copiar expenditures 109.4695 101.4945 153.2005 225,002 27490 Total net revenue por average seling square fool) $ 514 5 554 $ 545 $ 525 . 547 Total Quare feet at end of period 5.278.554 5.311.050 5285.025 5204.444 2054 Total net revenue per averige gross square foot S 612 130 $ 420 $ 444 Total gross square feet and of period 6.580.12 0.610,20% 0.01.11 3.100 6.503400 Number of employees and of period 40.700 38.700 37.800 30 000 40400 (1) Except for the year ended February 2018, which includes 3 weeks allscal years presented include 2 weeks (2) All mounts presented are from continuing operations for a periods presented. Refer to Note 10 in the compong Consolidated Financial Statements for additional information regarding the discontinued operations of his