American Eagle Outfitters, Inc., vs. The Buckle, Inc. RWP12-4 Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book. Required: 1. Calculate the following risk ratios for both companies for the most recent year. Based on these calculations, which company appears to be more risky? a. Receivables turnover ratio. b. Average collection period. c. Inventory turnover ratio. d. Average days in inventory. e. Current ratio. f. Acid-test ratio. g. Debt to equity ratio. 2. Calculate the following profitability ratios for both companies for the most recent year. Based on these calculations, which company appears to be more profitable? a. Gross profit ratio. b. Return on assets. c. Profit margin. d. Asset turnover. e. Return on equity. AMERICANEAGLE OUTFITTERS, NNC. Consolidated Balance Sheets Preferted stock, \$0. O1 par value; 5,000 shares authorized; none issued and outstanding Liabilities and stockholders' Equity Current liabilities: Refer.to. Notns ia Consolidoted. Fjoapcial Statements Reder to Notes to Contolidatod Financial Statementa Refer to Notes to Consoldated Financial Statements (1) 600,000 asthorized, 249,566 issued and 160,003 cutstanding, 50.01 par value cormmon stock at Febnaary 1 , 2020 ; 000,600 anithoilzed, 240,566 issued and 172,436 outstand ng. 50.01gar value common stock, at february 2,2019,600,000 authorized, 240,566 iswed and 177,316 outstanding. $0.01 par value common stock at February 3,2018,600,000 authoried, 249.565 issued and 181,666 outstandird. 50.01 par value common stock at January 26, 2017. The Company has 5,000 authorized, with none issued or outstandind. 30 a1 par value preferred stock for all perieds presented. (2) 82,573 shares, 77,130 shares and 72,250 shares at February 1, 2020, February 2, 2019 and February 3,2018 respectively During Fiscal 2019, Fiscal 2018, and Fiscal 2017, 1,324 shares, 3,363 shares, and 2,301 shares, fespectively, were reissued from treasury stock for the issuance of share-based payments. Refer to Notes to Consoidaled Financial Statements Reser to Nates to Consalidated Financial 5 tatements Refer to Notes to Consolidated Financial Statements THE BUCKLF, 1NC CONSOLIDATED BALANCE SHEETS (Amoents in Theusaeds Except Share and Per Share Ameunts) HABIIIITS AND STOCKHOH.DERS EOUTTY CLKRDNT LIABIIIIES: Aacouats payable 1HEF BUCKLE, INC. CONSOLEATED STATEMENTS OF INCOUE (Aneents in Themandy Ficcop Per Share Amaunts) \begin{tabular}{ccc} \hline & Fiscal Years Ended \\ \hline February 1+ & Febraary 2, & Febramy 3. \\ 2020 & mana & anio \end{tabular} Sce notes to consolidated finmecial statements. THE BUCKI. INC, CONSOLIDATEDSATFMENTS OF COMPREILNSIVE ANCOME See nokes to oonsotidated financial statcencnis. CASHHLOWS FROM FINANCING ACTIVTHIS- THE BUCKLE, INC. NOTES TO CONSOIIDATED FINANCLAL STATEMENTS (Dolfar Amounts is Thousands Except Share and Per Share Amueunto) 9pckins fo godehase the felsed property. E. PROPRRTYAND EQUIPMENT Fehruary 14 Feliruary 4 F. FINANCINGARRANGFMINTS The froviason for movare takes annists of Current incoene ux expease: fodeal Sate Dcierod unome ar expen se (bcacit) Total 1. COMMITMENTS AND CONTINGINCIES Iiffratian - From tume to tiene, the Company is involved in libgation relatmg to claima ansieg out of its openitions in the normal course of tusises Ai of the date of these coesolidated financial statements, Be Congany was not engaged ia any legal procecuinga that are ecpected, indiriehally of in the azgregate, ta laxe a material eflect on the Corrquny's conolidated resulte of operations and financial position L. EARNTVGS PERSHARE The following table pronides a reconctiation between basie and diloted carnings per ahare: Mirchandise Croup ITEM 9 - CHANGESIN AND DISAGRELMINTS WTTH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSUHE None. ITAM 9ACONTROLS AND PROCRDURES The Company maintains a syatem of destorse controle and prosectures that are designed fo provide resenable assurance that taalerial information, which is iseuired io be tamely disclosed a accumulated and comenumicaled to managcisem in a bimely manner. An evaluation of the etfeciveaess of the design and Compary"s drielaure controls and procedures as of the end of the period covered by this repont were effoctive to provide neasonable asearance that informatian nules and forme