Financial information for Buckle is presented in Anpendix B. Required: 1. Calculate the following risk ratios for the year ended February 3, 2018. (Use 365 days a year. Round your intermediate calculations and final answers to 1 decimal place.) Risk Ratios Receivables turnover ratio b. Average collection period c. Inventory turnover ratio d Average days in inventory Current ratio + Acid-test ratio 9 Debt to equity ratio times days times days 2. Calculate the following profitability ratios for the year ended February 3, 2018 (Round your intermediate calculations and final answers to 1 decimal place.) % b Profitability Ratios Gross profit ratio Return on assets Profit margin Adnet turnover Return on equily % ties B-4 APPENDIX B The Buckle, Inc., 2017 Annual Report THE BUCKLE, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) February 3, 2018 January 28, 2017 ASSETS $ CURRENT ASSETS: Cash and cash equivalents Short-term investments (Notes and C) Receivables Inventory Prepaid expenses and other assets (Note B) Total current sets 165,086 50,833 8,588 118,007 18.070 360,584 196,516 49.994 8,210 125,694 6,023 386,457 PROPERTY AND EQUIPMENT (Note D) Les accumulated depreciation and amortization 459,043 309.497) 149,546 459,359 (290,361) 168995 LONG-TERM INVESTMENTS (Notes Band) OTHER ASSETS (Notes and ) 21,453 6.533 18.092 6303 Totalsts $38.116 579,847 1931 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable Accrued employee compensation Accrued store operating expenses Gift certificates redeemable Income taxes payable Total current liabilities 29,387 $ 22,307 15,646 18,202 12,364 97,906 25,079 26,906 14,695 21,199 10,737 98,616 DEFERRED COMPENSATION (Note 1) DEFERRED RENT LIABILITY Total liabilities 15.154 33, NON 146,868 13.092 37.600 149, COMMITMENTS (Notes and 11) 488 STOCKHOLDERS' EQUITY (Note: Common teck, authorized 100,000,000 shares of S.01 par value 48.316,170 und 48,622,780 sharessed and outstanding February 3, 2018 und January 28, 2017, respectively Additional paid in capital Retained carings Accumulated other comprehensive kom Total Mockholders' equity 144.279 340,570 (9) 391,248 1.19,19 200,717 (N2 0.519 538,116 5 379.847 Total liabilities and stockholders' equity See notes to consolidated financial statements THE BUCKLE, INC. CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thoesands Except Per Share Amounts) February 2018 Fiscal Year Ended January 28, 2017 January 30, 2016 $ 974873 SALES, Net of retums and allowances of $87,389,5101,375, and 113,325, respectively 913180 S 5 1.119,616 COST OF SALES (Including buying, distribution, and occupancy costs) 533,357 577,705 635.215 30.023 Gross profit 397,168 481,401 OPERATING EXPENSES: Selling General and administrative 206,068 39,877 245,945 205,983 38475 244,40 212,531 19.282 251813 114,028 INCOME FROM OPERATIONS 152,760 229.5 OTHER INCOM.Net 5,407 3,511 5,236 INCOME BEFORE INCOME TAXES 139,485 156,271 234.824 PROVISION FOR INCOME TAXES (Note 49,778 5010 17.541 NET INCOM 89,707 S 147.22 97,961 $ EARNINGS PER SHARE( NK 1865 2015 3.6 $ Diluted $ 1855 306 See to solidated facial state B-6 APPENDIX B The Buckle, Inc., 2017 Annual Report THE BUCKLE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in Thousands) February 3, 2018 Fiscal Years Ended January 28 2017 January 30, 2016 5 1903 5 97,961 5 14738 NET INCOME 221 9 OUR COMPREHENSIVE INCOM, NET OF TAX Clupeinados en lavestment of tax of 51%, 129, 59. reply Restondament for losses included into out of taxes, $12,0 erectively Other comprehensive income 2 (7) 200 89,00 5 $ 20 $ 147, COMPRENSIVE INCOME Stocolated lancial statements CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Amounts in Thousands Except Share and Per Share Amounts) Accumulated Other Comprehensive Loss Number of Shares Additional Pald-la Capital Common Stock Retained Earnings Total 48,379,613 5 184 BALANCE, ary 31, 2015 $ 131,112 $ 204,111 5 5 355.27 147,283 (93,768) 147.23 093.768) 152,190 Netcome Dividends paid on comision stock, 181.94 per share) of veted stock, net of forfeitores Amortization of non-vented stock grants, set of forfeitures Inese tax benefit related to vesting of restricted shares Common Mock purchased and retired Change in unrealized lose co tevestments, set of tax 11-11 (1) 6,197 774 (3.218) 6,197 774 (103.693) (1) 0.219 ON 98 BALANCT, ary 10, 2016 48.428.110 $ 484 $ 1.34.864 $ 277.626 $ 5 (30) 97,961 (84,850) 97.961 (84,250) 194,670 330 Net income Dividend paid on common Nock. (51.75 per hare) ce arvested Mock, of forfeitures Anonimation of non-vested Hecks, et of forfeitures Income tax rated te vesting of restricted shares Change in eraired low on investments, net of tax Reclicaties went foloses included in me income of tax 5.330 (794) 221 28 BALANCE, Jawary 28, 2017 48.622,780 S 416 139.1985 290,737 $ (82) 410510 89,707 (133,874) 9,700 (113.874) Net Income Dividend paid on stock, (52.75 per share) Indefoder of forfeitures Amit of weed stock at offers Chapelous on and of 193,390 4,883 483 480116170 BALANCE Newary 3, 2018 246,570 1913 (14.578) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment Proceeds from sale of property and equipment Change in other assets Purchases of investments Proceeds from sales maturities of investments (13.462) 263 92 (56,631) $2.441 (31.663) 318 80 (41.621) 44.221 100 (29.714) 29,135 (17.297) (28,665) (34,858) Net cash flows from investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Purchases of common stock Payment of dividende (3.219) (93,768) (133.874) (84.RSO) Net emb flows from financing activities (133,874) (84.850) 096987) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (31450) 15,351 27.477 CASH AND CASH EQUIVALENTS, Beginning of your 1,536 161,185 ON CAST AND CASH EQUIVALENTS, End of year 165,0865 16.INS 116 5 See les to consolidated financial statements B-10 APPENDIX B The Buckle, Inc., 2017 Annual Report D. PROPERTY AND EQUIPMENT February 3, 2018 January 28, 2017 Land Building and improvements Office equipment Transportation equipment Lewehold improvements Fumiture and fixtures Shipping/receiving equipesent Construction in progress Total 2,49 $ 42,895 12,NON 20,966 166,106 182,019 29.491 2,267 459,013 2.491 42,698 12.632 20,955 166,561 183,046 29,507 1.466 459,359 Total future minimum rental commitments under these operating leases with remaining lease terms in excess of one year as of February 3, 2018 are as follows: Minimum Rental Commitments Fiscal Year S 68 69 2018 2019 2020 2021 2022 Thereafter Total minimum rental commitments 39.196 33.699 73,234 321,017 K. EARNINGS PER SHARE The following table provides a reconciliation between basic and diluted earnings per shure: February 3, 2018 Weighted Average Fiscal Years Eaded January 28, 2017 Weighted Average Per Share laceme Share (a) Amount January 20, 2016 Weighted Average Shares) Income Shares () Per Share Amount lecome Per Share Amunt $ 89,707 48.250 s 1.86 5 97,961 48,125 5 2.04 $ 147,283 ANON $ 3.06 Basic EPS Effect of Dutive Securities Non-vested shares Dilated Els 131 123 48.173 (0.01) LRS (0.01) 203 $ 125 44.204 89,707 5 5 97,961 48.256 5 $ 147,283 $ 3.06 (a) Shares in thousands L SEGMENT INFORMATION The Company is a retailer of medium to better priced casual apparel, footwear, and accessories The Company operates its business as one reportable segment. The Company operated 457 stores located in 44 states throughout the United States as of February 1, 2018 The following in information regarding the Company's major product lines, stated as a percentage of the Company's net sales Fiscal Year Ended January 28, February 2018 Merchandise Group January 30, 2016 2017 Den Tope melding women) Aconies Sportswear Fashion Footwear Chat we Chetums Other Total 31.0 9 64 41.556 323 9.1 62 6.1 2.0 13 1.5 10X 42294 308 9.2 6.5 59 2.0 2.1 15 1000 1000