AMERICAN EAGLE OUTFITTERS, INC.

Consolidated Balance Sheets AMERICAN EAGLE OUTFITTERS, INC.

Consolidated Statements of Operations

AMERICAN EAGLE OUTFITTERS, INC.

Consolidated Statements of Comprehensive Income $($Loss$)Financial$ information for American Eagle $is$ presented $in$ Appendix $A,$ and financial information for Buckle $is$ presented $in$ Appendix $B.$

Required: CONSOLIDATED BALANCE SHEETS

$($Amounts in Thousands Except Share and Per Share Amounts$)$

ASSETS

$\backslash$table$[[[$ January $28,],[2023],$ January $29,\_(2022)]]$

CURRENT ASSETS:

$\backslash$table$[[$Cash and cash equivalents,$$,252,077,$$$,253,970],[$Short$-$term investments $($Notes B and C$),,20,997,,12,926],[$Receivables$,,12,648,,12,087],[$Inventory$,,125,134,,102,095],[$Prepaid expenses and other assets,,$12,480,,10,128],[$Total current assets,,$423,336,,391,206],[,,,,],[$PROPERTY AND EQUIPMENT $($Note E$),,466,321,,453,228],[$Less accumulated depreciation and amortization,,$(353,919),,(352,724)],[,,112,402,,100,504],[,,,,],[$OPERATING LEASE RIGHT$-$OF$-$USE ASSETS $($Note D$),,271,421,,258,914],[$LONG$-$TERM INVESTMENTS $($Notes B and C$),,20,624,,19,352],[$OTHER ASSETS $($Notes G and H$),,9,796,,10,908],[,,,,],[$Total assets,$$,837,579,$$$,=780,884]]$

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

$\backslash$table$[[$Accounts payable,$$,44,835,$$$,59,950],[$Accrued employee compensation,,$55,490,,62,055],[$Accrued store operating expenses,,$19,754,,20,264],[$Gift certificates redeemable,,$16,777,,16,470],[$Current portion of operating lease liabilities $($Note D$),,89,187,,88,273],[$Income taxes payable $($Note G$),,-,,1,529],[$Total current liabilities,,$226,043,,248,541],[,,,,],[$DEFERRED COMPENSATION $($Note J$),,20,624,,19,352],[$NON$-$CURRENT OPERATING LEASE LIABILITIES $($Note D$),,214,598,,200,067],[$Total liabilities,,$461,265,,467,960]]$

COMMITMENTS $($Notes F and I$)$

STOCKHOLDERS' EQUITY $($Note K$)$:

Common stock, authorized $100,000,000$ shares of $$0\mathrm{.}01$ par value; $50,092,616$ and $49,728,651$ shares issued and outstanding at January $28,2023$ and January $29,2022,$ respectively

Additional paid$-$in capital

Retained earnings

Total stockholders' equity

$\backslash$table$[[501,,497],[,178,964,,167,328],[,196,849,,145,099],[,376,314,,312,924],[$$$,837,579,$$$,780,884]]$

Total liabilities and stockholders' equity

$=$$quad$837,579=$$quad$780,884$THE BUCKLE, INC.

CONSOLIDATED STATEMENTS OF INCOME

$($Amounts in Thousands Except Per Share Amounts$)$

See notes to consolidated financial statements.

$1-a.$ Calculate the following return $to$ shareholders and profitability ratios for both companies for the most recent year.

$1-b.$ Based $on$ these calculations, which company appears $to$ deliver a higher return? Which company appears $tobe$ more profitable?

$2-a.$ Calculate the following asset management and credit risk ratios for both companies for the most recent year.