Followings are for Express, Inc:

Industry Ratio Report:

Plz look the question clearly!! Thx!! (Enter your answers in decimals and not in percentages. Round to THREE decimal places.)

! Required information CP5-3 (Static) Comparing Companies within an Industry LO-5-4 [The following information applies to the questions displayed below.) Refer to the financial statements of American Eagle Outfitters (Appendix B) and Express, Inc. (Appendix C) and the Industry Ratio Report (Appendix D) at the end of this book. (Enter your answers in decimals and not in percentages. Round to three decimal places.) CP5-3 Part 2 2-a. Use ROA profit driver analysis to determine the cause(s) of any differences. American Eagle Outfitters Express, Inc. ROA Analysis Net Profit Margin Total Asset Turnover Return on Assets AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets February 3, 2018 January 28, 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, $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 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 $ $ Refer to Notes to Consolidated Financial Statements Item 6. Selected Consolidated Financial Data. The following selected Consolidated Financial Data should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations, included under Item 7 below and the Consolidated Financial Statements and Notes thereto, included in Item 8 below. Most of the selected Consolidated Financial Statements data presented below is derived from our Consolidated Financial Statements, if applicable, which are filed in response to Item 8 below. The selected Consolidated Statement of Operations data for the years ended January 31, 2015 and February 1, 2014 and the selected Consolidated Balance Sheet data as of January 30, 2016, January 31, 2015 and February 1, 2014 are derived from audited Consolidated Financial Statements not included herein. For the Years Ended (1) (In thousands, except per share amounts, ratios and February 3, January 28, January 30 January 31, February 1, other non-financial information) 2018 2017 2016 2015 2014 Summary of Operations (2) Total net revenue $ 3,795,549 3,609,865 $ 3,521,848 $ 3,282,867 $ 3,305,802 Comparable sales increase (decrease) (3) 4% 3% 7% (5)% (6) Gross profit $ 1,370,505 $ 1,366,927 $ 1,302,734 $ 1,154,674 $ 1,113,999 Gross profit as a percentage of net sales 36.1% 37.9% 37.0% 35.2% 33.7% Operating income $ 302,788 $ 331,476 $ 319,878 $ 155,765 $ 141,055 Operating income as a percentage of net sales 8.0% 9.2% 9.1% 4.7% 4.3% Income from continuing operations $ 204,163 $ 212,449 $ 213,291 $ 88,787 $ 82,983 Income from continuing operations as a percentage of net sales 5.4% 5.9% 6.1% 2.6% 2.5% Per Share Results Income from continuing operations per common share-basic 1.15 1.17 $ 1.10 $ 0.46 $ 0.43 Income from continuing operations per common share-diluted $ 1.13 $ 1.16 $ 1.09 $ 0.46 $ 0.43 Weighted average common shares outstanding - basic 177,938 181,429 194,351 194,437 192,802 Weighted average common shares outstanding - diluted 180, 156 183,835 196,237 195, 135 194,475 Cash dividends per common share $ 0.50 $ 0.50 0.50 $ 0.50 $ 0.38 Balance Sheet Information Total cash and short-term investments $ 413,613 $ 378,613 $ 260,067 $ 410,697 $ 428,935 Long-term investments $ $ $ $ $ Total assets $ 1,816,313 $ 1,782,660 $ 1,612,246 $ 1,696,908 $ 1,694,164 Long & short-term debt $ $ $ $ $ Stockholders' equity $ 1,246,791 $ 1,204,569 $ 1,051,376 $ 1,139,746 $ 1,166,178 Working capital $ 483,309 $ 407,446 $ 259,693 $ 368,947 $ 462,604 Current ratio 2.00 1.83 1.56 1.80 2.11 Average return on stockholders' equity (5) 16.7% 18.8% 19.9% 7.0% 7.0% Other Financial Information (2) Total stores at year-end 1,047 1,050 1,047 1,056 1,066 Capital expenditures $ 169,469 $ 161,494 $ 153,256 $ 245,002 $ 278,499 Total net revenue per average selling square foot (4) $ 514 $ 534 $ 545 $ 525 $ 547 Total selling square feet at end of period 5,278,554 5,311,659 5,285,025 5,294,744 5,205,948 Total net revenue per average gross square foot (4) $ 412 $ 428 $ 436 $ 420 $ 444 Total gross square feet at end of period 6,580,812 6,619,267 6,601,112 6,613,100 6,503,486 Number of employees at end of period 40,700 38,700 37,800 38,000 40,400 B-6 APPENDIX B 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 Refer to Notes to Consolidated Financial Statements APPENDIX B B-7 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 $ $ $ Refer to Notes to Consolidated Financial Statements AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Stockholders' Equity Shares Outstanding (1) 194,516 Common Stock $ 2,496 Accumulated Other Comprehensive Income (Loss) Contributed Capital 569,675 31,937 Retained Earnings 1,543,085 Treasury Stock (2) (965,566) Stockholders' Equity 1,139,746 31,937 $ (9,944) (15,563) (227,071) (227,071) Rem employees (324) 1,506 (13,237) (2,332) 218,138 (5,163) 26,461 (5,163) 10,892 218.138 (19,924) (19,924) (99,624) $ 1,659,267 180,135 $ 2,496 2,445 590,820 27,877 $ $ (1,171,339) $ (29,868) $ (97,179) 1,051,376 27,877 (In thousands, except per share amounts) Balance at January 31, 2015 Stock awards Repurchase of common stock as part of publicly ancor por announced programs an Repurchase of common stock from Reissuance of treasury stock Net income Other comprehensive loss Cash dividends and dividend equivalents ($0.50 per share) Balance at January 30, 2016 Stock awards Repurchase of common stock as part of publicly announced programs Repurchase of common stock from employees Reissuance of treasury stock Net income Other comprehensive loss Cash dividends and dividend equivalents ($0.50 per share) Balance at January 28, 2017 Stock awards Repurchase of common stock as part of publicly ancor por announced programs am Report Repurchase of common stock from employees Reissuance of treasury stock (455) 2,206 ||||| (7,032) 37,241 (17,247) (2,821) 212,449 (7,032) 17.173 212,449 (6,594) (6,594) (93,120) $ 1,775,775 181.886 $ 2,496 2,440 603,890 17,202 $ $ (1,141,130) $ (36,462) $ (90,680) 1,204,569 17,202 (6,000) (87,672) (87,672) (871) 2,301 (29,632) (12,513) 39,043 (5,488) 204,163 Net income (12,513) 3,923 204,163 5,667 5,667 Other comprehensive loss Cash dividends and dividend equivalents ($0.50 per share) Balance at February 3, 2018 2,310 593,770 (90,858) 1,883,592 (88,548) 1,246,791 177,316 $ 2,496 $ $ $ (1,202,272) $ (30,795) $ (1) 600,000 authorized, 249,566 issued and 177,316 outstanding, $0.01 par value common stock at February 3, 2018; 600,000 authorized, 249,566 issued and 181,886 outstanding, $0.01 par value common stock at January 28, 2017; 600,000 authorized, 249,566 issued and 180,135 outstanding, $0.01 par value common stock at January 30, 2016; 600,000 authorized, 249,566 issued and 194,516 outstanding, $0.01 par value common stock at January 31, 2015. The Company has 5,000 authorized, with none issued or outstanding, $0.01 par value preferred stock for all periods presented. 72,250 shares, 67,680 shares and 69,431 shares at February 3, 2018, January 28, 2017 and January 30, 2016 respectively. During Fiscal 2017, Fiscal 2016, and Fiscal 2015, 2,301 shares, 2,206 shares, and 1,506 shares, respectively, were reissued from treasury stock for the issuance of share-based payments. (2) Refer to Notes to Consolidated Financial Statements AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Cash Flows February 3, 2018 For the Years Ended January 28, 2017 January 30, 2016 $ 204,163 $ 212,449 S 218,138 (4,847) 213,291 s 204,163 $ 212,449 $ 169,473 16,890 44,312 (5,616) 158,174 29,137 14,838 (835) 20,576 148,858 34,977 4,680 2,977 of assets (9,422) (In thousands) Operating activities: Net income Gain from discontinued operations, net of tax Income from continuing operations Adjustments to reconcile net income to net cash provided by operating iti activities Depreciation and amortization Share-based compensation Deferred income taxes Forei Foreign currency transaction (gain) loss Loss on impairment Gain on sale of assets Changes in assets and liabilities: Merchandise Merchandise inventory Accounts receivable Drone Prepaid expenses and other Other assets needed Accounts payable Unredeemed gift cards and gift certificates ofern Deferred lease credits Accrued compensation and payroll taxes Accrued income and other taxes Accrued liabilities Total adjustments Net cash provided by operating activities from continuing operations Investing activities: Capital expenditures for property and equipment Acquisitions and purchase of long-lived assets in business combination Proceeds from sale of assets Acquisition of intangible assets Net cash used for investing activities from continuing operations (35,912) 8,837 (399) 5,317 ces (16,663) Ozx (874) 984 1.289 565 2.060 190,263 394,426 (53,613) (7.705) 1920 (332) 205 (6,705) 52,347 ACE 4,465 (5,229) (25,809) (10,695) (15,467) 153,147 365,596 (22,259 (10,093 (7,027) 12 (10,017) 4001 (3,189) 755 76 (4.099) 34,234 (17,615) (14,133) 128,627 341,918 (169,469 (161,494) (153,256) (10,442) 12,579 (2,382) (153,501 (2,681) (172,150 (1,528) (163,022) (4,375) (3,384) (87,682) (12,513) 3,355 (7,032) 16,260 763 (90,680) (85,064) Financing activities: Payments on capital leases and other Repurchase of common stock as part of publicly announced programs Repurchase of common stock from employees Net proceeds from stock options exercised Excess tax benefit from share-based payments Cash dividends paid Net cash used for financing activities from continuing operations Effect of exchange rates on cash Cash flows of discontinued operations Net cash used for operating activities Net cash used for investing activities Net cash used for financing activities Effect of exchange rates on cash Net cash used for discontinued operations (7,635) (227,071) (5,163) 7,283 657 (97,237 (329,166) (88,548 (188,772) 1,496 1,036 (3,076) (6,805) (6,805) Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - beginning of period Cash and cash equivalents - end of period $ 35,000 378,613 413,613 $ 118,546 260,067 378,613 $ (150,630) 410,697 260.067 Refer to Notes to Consolidated Financial Statements 17. Quarterly Financial Information - Unaudited The sum of the quarterly EPS amounts may not equal the full year amount as the computations of the weighted average shares outstanding for each quarter and the full year are calculated independently. (In thousands, except per share amounts) Total net revenue Gross profit Income from continuing operations Gain from discontinued operations, net of tax Net income April 29, 2017 $ 761,836 $ 277,822 25,236 Fiscal 2017 Quarters Ended July 29, October 28, 2017 2017 $ 844,557 $ 960,433 $ 292,649 $ 374,913 21,236 63,733 February 3, 2018 $ 1,228,723 $ 425,120 93,957 $ 25,236 $ 21,236 $ 63,733 $ 93,957 Basic per common share amounts: Basic net income per common share $ 0.14 $ 0.12 $ 0.36 $ 0.53 Diluted per common share amounts: Diluted net income per common share $ 0.14 $ 0.12 $ 0.36 $ 0.52 (In thousands, except per share amounts) Total net revenue Gross profit Income from continuing operations Net income April 30, 2016 $ 749,416 $ 293,452 40,476 $ 40,476 Fiscal 2016 Quarters Ended July 30, October 29, 2016 2016 $ 822,594 $ 940,609 $ 307,095 $ 377,816 41,592 75,760 $ 41,592 $ 75,760 January 28, 2017 $ 1,097,246 $ 388,502 54,621 $ 54,621 Basic per common share amounts: Basic net income per common share $ 0.22 $ 0.23 $ 0.41 $ 0.30 Diluted per common share amounts: Diluted net income per common share $ 0.22 $ 0.23 $ 0.41 $ 0.30 EXPRESS, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands, Except Per Share Amounts) February 3, 2018 3 January 28, 2017 S $ 207,373 ASSETS CURRENT ASSETS: Cash and cash equivalents Receivables, net Inventories Prepaid minimum rent Other 236,222 12,084 266,271 30,779 19,780 565,136 15,787 241,424 31,626 17,923 Total current assets 514,133 PROPERTY AND EQUIPMENT Less: accumulated depreciation Property and equipment, net 1,047,447 (642,434) 405,013 1,029,176 (577,890) 451,286 197,618 7,025 197,618 7,926 TRADENAME/DOMAIN NAMES/TRADEMARKS DEFERRED TAX ASSETS OTHER ASSETS Total assets 12,815 1.187,607 14,226 1,185,189 S S S S 172,668 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: : Accounts payable Deferred revenue Accrued expenses Total current liabilities 145,589 28,920 116.355 29,428 80,301 290,864 282.397 146,328 DEFERRED LEASE CREDITS OTHER LONG-TERM LIABILITIES Total liabilities 137,618 105,125 120,777 533,607 549,502 COMMITMENTS AND CONTINGENCIES (Note 13) ) 926 921 199,099 185,097 STOCKHOLDERS' EQUITY: Preferred stock - S0.01 par value; 10,000 shares authorized; no shares issued or outstanding Common stock - $0.01 par value; 500,000 shares authorized; 92,647 shares and 92,063 shares issued at February 3, 2018 and January 28, 2017, respectively, and 76,724 shares and 78,422 shares outstanding at February 3, 2018 and January 28, 2017, respectively Additional paid-in capital Accumulated other comprehensive loss Retained earnings Treasury stock - at average cost; 15,923 shares and 13,641 shares at February 3, 2018 and January 28, 2017, respectively Total stockholders' equity ' Total liabilities and stockholders' equity See notes to consolidated financial statements. (3,803) 710,081 690,715 (256,106 (237,243) 654,000 635,687 S 1.187.607 S 1,185,189 EXPRESS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Amounts in Thousands) Common Stock Treasury Stock Additional Paid-in Capital Shares Outstanding Par Value Accumulated Other Comprehensive Loss Retained Earnings At Average Cost Shares Total BALANCE, January 31, 2015 84,298 S 904 $ 149,789 S 516,785 S (3,057) 6,102 $ (108,082) $ 556,339 Net income 116,513 116,513 Issuance of common stock 727 7 1,269 1,276 Share-based compensation 18,457 18,457 Repurchase of common stock (4,111) 4,111 (73,024) (73,024) Foreign currency translation (1,608) (1,608) BALANCE, January 30, 2016 80,914 S 911 $ 169,515 S 633,298 S (4,665) 10.213 $ (181,106) S 617,953 Net income 57,417 57,417 Issuance of common stock 936 10 2.724 2,734 Share-based compensation 12.858 12,858 Repurchase of common stock (3,428) 3,428 (56,137) (56,137) Foreign currency translation 862 862 BALANCE, January 28, 2017 78,422 $ 921 $ 185,097 S 690,715 S (3,803) 13,641 $ (237,243) S 635,687 Net income 19,366 19,366 Issuance of common stock 584 5 (6 ) (1) Share-based compensation 14,008 14.008 Repurchase of common stock (2,282) 2.282 (18,863) (18,863) Foreign currency translation (402) (402) Amount reclassified to earnings 4,205 4,205 BALANCE, February 3, 2018 76,724 $ 926 $ 199,099 S 710,081 S 15,923 $ (256,106) S 654,000 See notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Amounts in Thousands, Except Per Share Amounts) 2017 2016 2015 NET SALES S 2,138,030 $ 2,192,547 S 2,350,129 COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS 1.522.797 1,529,343 1,554.852 Gross profit 615,233 663,204 795,277 OPERATING EXPENSES: Selling, general, and administrative expenses 562,088 559,541 587,747 Restructuring costs 22.869 Other operating expense, net 536 62 292 Total operating expenses 585,493 559,603 588,039 OPERATING INCOME 29,740 103,601 207,238 INTEREST EXPENSE, NET 2.242 13,468 15.882 OTHER (INCOME) EXPENSE, NET (537) (484) 672 INCOME BEFORE INCOME TAXES 28,035 90.617 190,684 INCOME TAX EXPENSE 8,669 33.200 74,171 NET INCOME S 19,366 $ 57.417 s 116,513 OTHER COMPREHENSIVE INCOME: Foreign currency translation gain (loss) S (402) $ 862 S (1,608) Amount reclassified to earnings 4,205 COMPREHENSIVE INCOME S 23.169 $ 58.279 S 114,905 EARNINGS PER SHARE: Basic 0.25 S 0.73 S 1.39 Diluted S 0.25 $ 0.73 S 1.38 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 78,592 78,669 83,980 Diluted 78.870 79,049 84,591 2017 2016 2015 $ 19,366 $ 57,417 $ 116,513 90,221 82,144 74,904 2,891 942 1.561 9,850 5,108 2.657 10,672 11,354 (347) 14.008 12,858 18,438 5,314 (912) (13,183 ) (500) 20,065 (11,280 (10,700) (12,730) (2.812) 6,371 14,144 CASH FLOWS FROM OPERATING ACTIVITIES: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Loss on disposal of property and equipment Impairment charge Loss on deconsolidation of Canada Amortization of lease financing obligation discount Excess tax benefit from share-based compensation Share-based compensation Non-cash loss on extinguishment of debt Deferred taxes Landlord allowance amortization Other non-cash adjustments Payment of original issue discount Changes in operating assets and liabilities: Receivables, net Inventories Accounts payable, deferred revenue, and accrued expenses Other assets and liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Decrease in cash and cash equivalents resulting from deconsolidation of Canada Purchase of intangible assets Investment in equity interests Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of long-terin debt Costs incurred in connection with debt arrangements Payments on lease financing obligations Repayments of financing arrangements Excess tax benefit from share-based compensation Proceeds from exercise of stock options Repurchase of common stock under share repurchase programs (see Note 9) Repurchase of common stock for tax withholding obligations Net cash used in financing activities 3,279 (28,954 ) (12.862) 24,691 118,567 (15,857 3,442 186,708 1,097 (14,625 ) 17,705 32,628 229,603 (57,435 ) (98,712) (115,343 ) (9,232 ) (35) (21) (10,133) (108.866) (66,667) (115,378 ) (198,038) (1,006) (1,552 (1,710 ) (2,040 ) (1,595 ) (3,274) 347 1.276 2,735 (17,264) (1,599) (22,613 ) (51,538) (4,599) (68,574) (4,450) (58,271 (271,997) EFFECT OF EXCHANGE RATE ON CASH (438) 899 (1.484) 28,849 20,470 (159.256 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, Beginning of period CASH AND CASH EQUIVALENTS, End of period 207,373 186,903 346,159 186,903 S 236.222 S 207,373 $ S S S SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest Cash paid to taxing authorities See notes to consolidated financial statements. 8.787 71,686 s 6,142 S 40,413 S APPENDIX D INDUSTRY RATIO REPORT Retail Family Clothing Stores Liquidity Current Ratio Quick Ratio 2.43 1.52 Activity Inventory Turnover Days to Sell Inventory Receivables Turnover Average Collection Period Fixed Asset Turnover Total Asset Turnover Accounts Payable Turnover 6.36 57.39 days 106.12 3.44 days 5.79 COMPANIES USED IN INDUSTRY ANALYSIS Company Name Ticker Symbol American Eagle Outfitters, Inc. AEO Buckle, Inc. BKE The Cato Corporation CATO Chico's FAS, Inc. CHS Express, Inc. EXPR Francesca's Holdings Corporation FRAN The Gap, Inc. GPS Tilly's, Inc. TLYS Urban Outfitters, Inc. URBN Zumiez, Inc. ZUMZ 1.93 14.60 Profitability Gross Profit Percentage Net Profit Margin Return on Equity Return on Assets Quality of Income Ratio 34.94% 3.85% 12.57% 7.44% 2.61 Leverage Debt-to-Equity 0.70 Dividends Dividend Yield 2.59% Other Capital Acquisitions Ratio Price/Earnings 3.13 20.85