CP3-2	Finding Financial Information			LO3-2, 3-4, 3-6
	Refer to the financial statements of Urban Outfitters in Appendix C at the end of the book.
	Required:
	1. What is the company's revenue recognition policy? (Hint: Look in the notes to the financial statements.)
	2. Assuming that $50 million of cost of sales was due to noninventory purchase expenses (distribution and occupancy costs), how
	much inventory did the company buy during the year? (Hint: Use a T-account of inventory to infer how much was purchased.)
		INVENTORY (in thousands)
	Inventory purchased during the year:
	3. Calculate selling, general, and administrative expenses as a percent of sales for each year presented. (Dollars in thousands.)
	Year Ended	SG&A Expenses /	Net Sales Revenue	= Percentage
	2012
	2011
	2010
	By what percent did these expenses increase or decrease from fiscal years ended 2011 and 2012 and between 2010 and 2011?
	(Hint: Percentage Change = [Current Year Amount Prior Year Amount]/Prior Year Amount.)
			% Change	Incr. or Decr.
	Between years ended 2011 and 2012:
	Between years ended 2010 and 2011:
	4. Compute the company's net profit margin for each year presented. (Dollars in thousands.)
	Fiscal Year Ended	Net Income /	Net Sales (or Operating) Revenues	= Net Profit Margin Ratio
	2012
	2011
	2010
	Explain net profit margin ratio and discuss the results shown above.

URBAN OUTFITTERS, INC. Consolidated Balance Sheets ASSETS Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net of allowance for doubtful accounts of $1,614 and $1,015, respectively Inventories Prepaid expenses and other current assets Deferred taxes Total current assets Property and equipment, net Marketable securities Deferred income taxes and other assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation Accrued expenses and other current liabilities Total current liabilities Deferred rent and other liabilities Total Liabilities Commitments and contingencies (see Note 12) Shareholders' equity: Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued Common shares; $.0001 par value, 200,000,000 shares authorized, 144,633,007 and 164,413,427 issued and outstanding, respectively Additional paid-in capital Retained earnings Accumulated other com ensive loss Total Shareholders' Equity Total Liabilities and Shareholders' Equity January 31, 2012 2011 145,273 340,257 89,854 116,420 36,673 36,502 250,073 229,561 69,876 66,886 5,243 14,351 596,992 803,977 684,979 586,346 126,913 351,988 74,824 52,010 $1,483,708 $1,794,321 95,754 82,904 15,630 20,212 122,082 107,908 211,024 233,466 183,974 171,749 417.440 382,773 15 17 27,603 1,394,190 1,077,765 1,066,268 1,411,548 $1,483,708 $1,794,321