Financial information for American Eagle is presented in Appendix A, and financial information for Buckle is presented in Appendix B Required: 1. Calculate American Eagle's return on assets, profit margin, and asset turnover ratio for the year 2018. (Round your answers to 1 decimal place.) % Return on Assets Profit Margin Asset Turnover % times 2. Calculate Buckle's return on assets, profit margin, and asset turnover ratio for the year 2018. (Round your answers to 1 decimal place.) % Return on Assets Profit Margin Asset Turnover % times THE BUCKLE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in Thousands) February 3, 2018 Fiscal Years Ended January 28, 2017 January 30, 2016 NET INCOME 89,707 S 97.961 S 147.283 (7) 221 98 OTHER COMPREHENSIVE INCOME, NET OF TAX: Change in unrealized loss on investments, act of tax of $17, 5129, and 559, respectively Reclussification adjustment for losses included in net income, net of tax of S0, S17, and $I), respectively Other comprehensive income 28 (7) 249 98 COMPREHENSIVE INCOME 5 89,700 S 98,210 S 147,381 See notes to consolidated financial statements. THE BUCKLE, INC. CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thousands Except Per Share Amounts) February 3, 2018 Fiscal Years Ended January 28, 2017 January 30, 2016 SALES, Net of returns and allowances of $87,389, 5101,375, and $113,325, respectively $ 913,380 $ 974,873 S 1,119,616 COST OF SALES (Including buying, distribution, and occupancy posts) 533,357 577,705 638,215 Gross prolit 380,023 397,168 181,101 OPERATING EXPENSES: Selling Ceneral and administrative 206,068 39,877 245,945 205,933 38,475 244,408 212,531 39,282 251.813 INCOME FROM OPERATIONS 134,078 152.760 229,588 OTHER INCOMIS, Nel 5,407 3,511 5,236 INCOME BEFORE INCOME TAXES 139,485 156,271 234,824 PROVISION FOR INCOME TAXES (Note !) 49,778 58,310 87,541 NET INCOME $ 89,707 $ 97,961 S 147,283 EARNINGS PER SHARE (Note K): Basic $ 1.86 $ 2.04 S 3.06 Diluted $ 1.85 S 2.03 S 3.06 See notes to consolidated financial statements. February 3, 2018 ASSETS January 28, 2017 s S CURRENT ASSETS: Cash and cash oquivalents Short-term investments (Notes Band) Receivables Inventory Prepaid expenses and other assets (Note ) Total current assets 165,086 50,833 8,588 118.007 18070 360,584 196,536 49,994 8,210 125,691 6,0823 386,457 PROPERTY AND EQUIPMENT (Note D Less accumulated depreciation and amortization 459,043 (309.497) 149,546 459,359 (290,364) 168,995 LONG-TERM INVESTMENTS (Notes B and C) OTHER ASSETS (Notes F and (1) 21.453 6.533 18,092 6,303 Total assets S 538,116 S 579,847 LIABILITIES AND STOCKHOLDERS' EQUITY S CURRENT LIABILITIES: Accounts payable Accrued employee compensation Accrued store operating expenses Gift certificates redeemable Income taxes yable Total current liabilities 29.387 22.307 15,646 18.202 12,364 97,906 25,079 26,916 14,695 21,199 10,737 98,616 DEFERRED COMPENSATION (Note I) DEFERRED RENT LIABILITY Total liabilities 15,154 33.808 13,092 37,600 149,308 146,868 COMMITMENTS (Notes E and H) 488 STOCKHOLDERS' EQUITY (Note J): Common stock, authorized 100,000,000 shares of $.01 par value; 48,816,170 and 48,622,780 shares issued and outstanding at February 3, 2018 and January 28, 2017, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity 144.279 246,570 9) 391,248 486 139,398 290,737 (82) 430,539 Total liabilities and stockholders' equity S 538,116 S 579,847 AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Comprehensive Income February 3 2018 204,163 For the Years Ended January 28, 2017 $ 212,449 January 30, 2016 218,138 $ (In thousands) Net income Other comprehensive gain (loss): Foreign currency translation gain (loss) Other comprehensive gain (loss) Comprehensive income 5.667 5,667 209,830 (6,594) (6,594) 205,855 (19,924) (19,924) 198,214 $ S $ Refer to Notes to Consolidated Financial Statements AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Operations February 3 2018 3,795,549 For the Years Ended January 28, 2017 $ 3,609,865 January 30, 2016 3,521,848 $ $ (In thousands, except per 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 2,242,938 1,366,927 857,562 21,166 156,723 331,476 3,786 335,262 122,813 212,449 2,219,114 1,302,734 834,700 0 148,156 319,878 1,993 321,871 108,580 213,291 4,847 218,138 $ 204,163 $ 212,449 $ $ 1.15 $ 1.17 $ Basic income per common share: Income from continuing operations Discontinued operations Basic net income per common share 1.10 0.02 1.12 $ 1.15 $ 1.17 $ $ 1.13 $ 1.16 $ Diluted income per common share: Income from continuing operations Discontinued operations Diluted net income per common share 1.09 0.02 1.11 $ 1.13 $ 1.16 $ Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted 177,938 180, 156 181,429 183,835 194,351 196,237 2018 2017 $ (In thousands, except per share amounts) 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 1,782,660 $ $ $ $ 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 36,810 493,783 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 lease credits Other liabilities and accrued expenses Total current liabilities Non-current liabilities: Deferred lease credits Non-current accrued income taxes Other non-current liabilities Total non-current liabilities Commitments and contingencies Stockholders' equity: Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding Common stock, S0.01 par value; 600,000 shares authorized; 249,566 shares issued; 177,316 and 181,886 shares outstanding, respectively Contributed capital Accumulated other comprehensive loss, net of tax Retained earnings Treasury stock, 72,250 and 67,680 shares, respectively, at cost Total stockholders' equity Total liabilities and stockholders' equity 47,977 7,269 29,055 84,301 45,114 4,537 34,657 84,308 2,496 593,770 (30,795) 1,883,592 (1,202,272) 1,246,791 1,816,313 2,496 603,890 (36,462) 1,775,775 (1,141,130) 1,204,569 1,782,660 $ $