Financial information from American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix
Financial information from American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book.
1-a. Calculate the current ratio for both companies for the year ended February 3, 2018. (Round your answers to 2 decimal places.)
Current Ratio for American Eagle and Buckle:
2-a. Calculate the acid-test (quick) ratio for both companies for the year ended February 3, 2018. (Round your answers to 2 decimal places.)
Acid- Test Ratio for American Eagle and Buckle:
How would the purchase of additional inventory with accounts payable affect the current ratio for the two companies?
AMERICAN EAGLE OUTFITTERS, INC Consolidated Balance Sheets February 3, January 28, Assets Current assets 378,613 358,446 86,634 77,538 901,229 707,797 49,373 14,887 49,250 60,124 1,782,660 Cash and cash equivalents 413,613 S Merchandise inventory 398,213 78,304 78,400 968,530 724,239 46,666 15,070 9,344 52,464 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 1,816,313 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 236,703 $ 246,204 54,324 83,312 12,781 52,347 11,203 34,551 485,221 78,619 12,220 52,966 12,780 36,810 493,783 Total current liabilities Non-current liabilities: Deferred lease credits Non-current accrued income taxes Other non-current liabilities 47,977 7,269 45,114 4,537 34,657 84,308 Total non-current liabilities Commitments and contingencies Stockholders' equity: 84,301 Preferred stock, $0.01 par value; 5,000 shares authorized, none issued and outstanding Common stock, $0.01 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 2,496 593,770 (30,795) 1,883,592 2.496 603,890 (36,462) 1,775,775 1.202 272) (1.141.130) 1,204,569 Total stockholders' equity Total liabilities and stockholders' equity 1.246.791-77880 1,782,660 1,816,313 $ Refer to Notes to Consolidated Financial Statements February 3, 2018 January 28, 2017 ASSETS CURRENT ASSETS 165,086$ Cush and cash equivalents Short-term investments (Notes B and C) 50,833 8,588 118,007 18,070 360,584 196,536 49,994 8,210 125,694 6,023 386,457 Prepaid expenses and other assets (Note F) Total curent assets 459,043 (309,497) 149,546 PROPERTY AND EQUIPMENT (Note D) 459,359 (290364) 168,995 LONG-TERM INVESTMENTS (Notes B and C) OTHER ASSETS (Notes F and G) 21,453 18,092 6,533 6.303 Total assets 538,116 $ 579.847 LIABILIIIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable Accrued employee compensation Accrued store operating expenses Gift certificates redeemable Income taxes payable 29,387 S 22,307 15,646 18,202 12,364 97.906 25,079 26,906 14,695 21.199 10,737 98,616 Total current liabilities DEFERRED COMPENSATION (Note ) DEFERRED RENT LIABILITY 15,154 33,808 146,868 13,092 37.600 49.308 Total liabalities COMMITMENTS (Notes E and H) STOCKHOLDERS' EQUITY (Note J) Common stock, authorized 100,000,000 shares of S.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 eamings Accumulated other comprehensive loss 488 144,279 246,570 (89) 391,248 486 139,398 290,737 (82) 430,539 Total stockholders equity Total liabilities and stockholders' equity 538,116 $ 579,847 See notes to consolidated financial statements AMERICAN EAGLE OUTFITTERS, INC Consolidated Balance Sheets February 3, January 28, Assets Current assets 378,613 358,446 86,634 77,538 901,229 707,797 49,373 14,887 49,250 60,124 1,782,660 Cash and cash equivalents 413,613 S Merchandise inventory 398,213 78,304 78,400 968,530 724,239 46,666 15,070 9,344 52,464 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 1,816,313 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 236,703 $ 246,204 54,324 83,312 12,781 52,347 11,203 34,551 485,221 78,619 12,220 52,966 12,780 36,810 493,783 Total current liabilities Non-current liabilities: Deferred lease credits Non-current accrued income taxes Other non-current liabilities 47,977 7,269 45,114 4,537 34,657 84,308 Total non-current liabilities Commitments and contingencies Stockholders' equity: 84,301 Preferred stock, $0.01 par value; 5,000 shares authorized, none issued and outstanding Common stock, $0.01 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 2,496 593,770 (30,795) 1,883,592 2.496 603,890 (36,462) 1,775,775 1.202 272) (1.141.130) 1,204,569 Total stockholders' equity Total liabilities and stockholders' equity 1.246.791-77880 1,782,660 1,816,313 $ Refer to Notes to Consolidated Financial Statements February 3, 2018 January 28, 2017 ASSETS CURRENT ASSETS 165,086$ Cush and cash equivalents Short-term investments (Notes B and C) 50,833 8,588 118,007 18,070 360,584 196,536 49,994 8,210 125,694 6,023 386,457 Prepaid expenses and other assets (Note F) Total curent assets 459,043 (309,497) 149,546 PROPERTY AND EQUIPMENT (Note D) 459,359 (290364) 168,995 LONG-TERM INVESTMENTS (Notes B and C) OTHER ASSETS (Notes F and G) 21,453 18,092 6,533 6.303 Total assets 538,116 $ 579.847 LIABILIIIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable Accrued employee compensation Accrued store operating expenses Gift certificates redeemable Income taxes payable 29,387 S 22,307 15,646 18,202 12,364 97.906 25,079 26,906 14,695 21.199 10,737 98,616 Total current liabilities DEFERRED COMPENSATION (Note ) DEFERRED RENT LIABILITY 15,154 33,808 146,868 13,092 37.600 49.308 Total liabalities COMMITMENTS (Notes E and H) STOCKHOLDERS' EQUITY (Note J) Common stock, authorized 100,000,000 shares of S.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 eamings Accumulated other comprehensive loss 488 144,279 246,570 (89) 391,248 486 139,398 290,737 (82) 430,539 Total stockholders equity Total liabilities and stockholders' equity 538,116 $ 579,847 See notes to consolidated financial statements
