Financial information for American Eagle is presented in AppendixA, and financial information for Buckle is presented in Appendix Required: 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 company's 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? Complete this question by entering your answers in the tabs below. Determine the inventory balance as a percentage of total assets for American Eagle and Buckle? Note: Round your answers to 1 decimal place. AMERICAN EAGLE OUTFITTERS, INC. C A C T F C It N C T L C T N T c s AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Operations \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ (in thousands, excopt per share amounts) } & \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 Total net revenue & $ & 4,308,212 & $ & 4,035,720 & $ & 3,795,549 \\ \hline \begin{tabular}{l} Cost of sales, including certain buying, occupancy and warehousing \\ expenses \end{tabular} & & 2,785,911 & & 2,548,082 & & 2,425,044 \\ \hline Gross profit & & 1,522,301 & & 1,487,638 & & 1,370,505 \\ \hline Selling, general and administrative expenses & & 1,029,412 & & 980,610 & & 879,685 \\ \hline Impairment and restructuring charges & & 80,494 & & 1,568 & & 20,611 \\ \hline Depreciation and amortization expense & & 179,050 & & 168,331 & & 167,421 \\ \hline Operating income & & 233,345 & & 337,129 & & 302,788 \\ \hline Other income (expense), net & & 11,933 & & 7,971 & & (15,615) \\ \hline Income before income taxes & & 245,278 & & 345,100 & & 287,173 \\ \hline Provision for income taxes & & 54,021 & & 83,198 & & 83,010 \\ \hline Net income & $ & 191,257 & $ & 261,902 & $ & 204,163 \\ \hline Basic net income per common share & $ & 1.13 & $ & 1.48 & $ & 1.15 \\ \hline Diluted net income per common share & $ & 1.12 & $ & 1.47 & $ & 1.13 \\ \hline Weighted average common shares outstanding - basic & & 169,711 & & 176,476 & & 177,938 \\ \hline Weighted average common shares outstanding - diluted & & 170,867 & & 178,035 & & 180,156 \\ \hline \end{tabular} Refer to Notes to Consolidated Financial Statements AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Comprehensive Income Refer to Notes to Consolidated Financial Statements THE BUCKLE, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) \begin{tabular}{|c|c|c|} \hline ASSETS & \begin{tabular}{l} February 1, \\ 2020 \end{tabular} & \begin{tabular}{c} February 2, \\ 2019 \end{tabular} \\ \hline \multicolumn{3}{|l|}{ CURRENT ASSETS: } \\ \hline Cash and cash equivalents & 220,969 & 168,471 \\ \hline Short-term investments (Notes B and C) & 12,532 & 51,546 \\ \hline Receivables & 3,136 & 7,089 \\ \hline Inventory & 121,258 & 125,190 \\ \hline Prepaid expenses and ocher assets & 20,935 & 18,136 \\ \hline Total current assets & 378,830 & 370,432 \\ \hline PROPERTY AND EQUIPMENT (Note E) & 452,205 & 452,187 \\ \hline \multirow[t]{2}{*}{ Less accumulated depreciation and amortization } & (338,357) & (321,505) \\ \hline & 113,848 & 130,682 \\ \hline OPERATING LEASE RIGHT-OF-USE ASSETS (Note D) & 350,088 & - \\ \hline LONG-TERM INVESTMENTS (Notes B and C) & 15,863 & 18,745 \\ \hline OTHER ASSETS (Notes G and H) & 9,261 & 7,443 \\ \hline Total assets & 867,890 & 527,302 \\ \hline \multicolumn{3}{|l|}{ LIABILITIES AND STOCKHOLDERS' EQUITY } \\ \hline \multicolumn{3}{|l|}{ CURRENT LIABILITIES: } \\ \hline Accounts payable & 26,491 & 29,008 \\ \hline Accrued employee compensation & 22,929 & 21,452 \\ \hline Accrued store operating expenses & 17,837 & 17,982 \\ \hline Gift certificates redeemable & 15,319 & 16,634 \\ \hline Current portion of operating lease liabilities (Note D) & 87,314 & - \\ \hline Income taxes payable (Note G) & 2,751 & 5,142 \\ \hline Total current liabilities & 172,641 & 90,218 \\ \hline DEFERRED COMPENSATION (Note J) & 15,863 & 13,978 \\ \hline NON-CURRENT OPERATING LEASE LIABILITIES (Note D) & 290,238 & - \\ \hline DEFERRED RENT LIABIL.ITY & - & 29,229 \\ \hline Total liabilities & 478,742 & 133,425 \\ \hline \multicolumn{3}{|l|}{ COMMTIMENTS (Notes F and I) } \\ \hline \multicolumn{3}{|l|}{ STOCKHOLDERS' EQUTY (Note K): } \\ \hline \begin{tabular}{l} Common stock, authorized 100,000,000 shares of $.01 par value; 49,205,681 and 49,017,395 shares issued and outstanding \\ at February 1,2020 and February 2, 2019, respectively \end{tabular} & 492 & 490 \\ \hline Additional paid-in capital & 152,258 & 148,564 \\ \hline Retained eamings & 236,398 & 244,823 \\ \hline Total stockbolders' equity & 389,148 & 393,877 \\ \hline Total liabilities and stockholders' equity & 867,890 & 527,302 \\ \hline \end{tabular} CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thousands Except Per Share Amounts) See notes to consolidated financial statements. THE BUCKLE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in Thousands)