Financial information for American Eagle and Buckle are presented. There are four questions:

1. Determine the inventory balance as a percentage of total assets for American Eagle and Buckle?

2. Which company has a higher inventory turnover ratio and therefore lower average days in inventory?

3. Which companys operations are more profitable using the gross profit ratio?

4. Considering the companies ratio of operating expenses (other than cost of goods sold) to net sales, does your answer to Requirement 3 change?

AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Onerations AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Comprehensive Income \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow{3}{*}{Netincome(Inthousands)} & \multicolumn{6}{|c|}{ For the Years Ended } \\ \hline & \multicolumn{2}{|c|}{\begin{tabular}{c} February 1, \\ 2020 \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} February 2 \\ 2019 \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} February 3, \\ 2018 \end{tabular}} \\ \hline & $ & 191,257 & $ & 261,902 & $ & 204,163 \\ \hline \multicolumn{7}{|l|}{ Other comprehensive gain (loss): } \\ \hline Foreign currency translation gain (loss) & & 1,664 & & (4,037) & & 5,667 \\ \hline Other comprehensive gain (loss) & & 1,664 & & (4,037) & & 5,667 \\ \hline Comprehensive income & $ & 192,921 & $ & 257,865 & $ & 209,830 \\ \hline \end{tabular} THE BUCKLE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in Thousands) \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multicolumn{6}{|c|}{ Fiscal Years Ended } \\ \hline & \multicolumn{2}{|c|}{\begin{tabular}{c} February 1, \\ 2020 \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} February 2, \\ 2019 \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} February 3, \\ 2018 \end{tabular}} \\ \hline NET INCOME & $ & 104,429 & $ & 95,608 & $ & 89,707 \\ \hline \multicolumn{7}{|l|}{ OTHER COMPREHENSIVE INCOME, NET OF TAX: } \\ \hline Change in unrealized loss on investments, net of tax of $0,$31, and $17, respectively & & - & & 89 & & (7) \\ \hline Other comprehensive income & & - & & 89 & & (7) \\ \hline COMPREHENSIVE INCOME & $ & 104,429 & $ & 95,697 & $ & 89,700 \\ \hline \end{tabular} , CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Amounts in Thousands Except Share and Per Share Amounts) THE BUCKLE, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) THE BUCKLE, INC. CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thousands Except Per Share Amounts)