Refer to the financial statements of American Eagle Outfitters given in Appendix B. Required: 1. How much Inventory does the company hold at the end of the most recent year? (Enter your answer in thousands.) 2. Estimate the amount of merchandise that the company purchased during the current year. (Hint: Use the cost of goods sold equation.) (Enter your answer in thousands.) 3. What method does the company use to determine the cost of its inventory? 4. Compute the inventory turnover ratio for the current year. (Round your Intermediate calculations to the nearest whole dollar and your final answer to 2 decimal places.) 1. Merchandise inventory 2. Purchased during the current year 3. Method to determine the cost of inventory 4. Inventory tumover thousand thousand Footy 2018 2017 S 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 473,613 398,213 78,304 78,400 968,530 724,239 46,666 15,070 9,344 52464 1,816,313 378,613 358,446 85.634 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 accruencome taxes Other non-current liabilities Total non-current liabilities Commitments and contingencies Stockholders equity Preferred stock, 30.01 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 eamings 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) 1204 569 1,782,660 S Saremontor Operations data for the years ended January 2015 and February 2014 and the selected Console 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 Year Endedit (in thousands, except per share amounts, ratios and February 3 January 28 January 30 January 31 February other non. Enancial 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 Comparable sales increase (decrease) (3) $ 3,305.802 4% 3% 79% (5)% Gross profit (6)% $ 1,370,505 $ 1,366,927 $ 1,302,734 $ 1.154,674 $ 1.113,999 Gross profit as a percentage of not sales 36.1% 37.9% 37.0% 35,2% 33.7% Operating income $ 302.788 $ 331 476 $ 319,878 S 155 765 $ 141,055 Operating income as a percentage of net sales B.0% 9.2% 9.1% 4.7% 4.39 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% 25% Per Share Results Income from continuing operations per common share-basic $ 1.15 $ 1.17 $ 1.105 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 5 0.50 $ 0,50 $ 0.50 5 0.50 5 0.38 Balance Sheet Information Total cash and short-term investments $ 413,613 S 378.613 S 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 S 259,693 $ 368.947 S 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 5 169.469 $ 161.494 $ 153,256 $ 245,002 $ 278 499 Total net revenue per average selling square foot (4) $ 514 $ 534 5 545 5 525 $ 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 averago gross square foot) 412 5 428 $ $ 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 (1) Except for the fiscal year onded February 3, 2018, which includes 53 weeks, all fiscal years presented include 52 weeks. (2) All amounts presented are from continuing operations for all periods presented. Refer to Note 16 to the accompanying Consolidated Financial Statements for additional information regarding the discontinued operations of 77kids. The comparable sales increase for Fiscal 2017 ended February 3, 2018 is compared to the corresponding 83-week period in Fiscal 2016. Additionally, comparable sales for all periods include AEO Direct sales 436 Market for the Registrant's Common Equity, Related Stockholder Matters and issuer Purchases of Securities mon stock is traded on the NYSE under the symbol "AEO". As of March 12, 2018, there were 504 stockholders of record. when including associates who own shares through our employee stock purchase plan, and others holding shares in Ecounts under street name, we estimate the stockholder base at approximately 40,000. The following table sets forth the high and low closing prices of the common stock as reported on the NYSE during the periods indicated. For the Quarters Ended February 3, 2018 October 28, 2017 July 29, 2017 April 29, 2017 January 28, 2017 October 29, 2016 July 30, 2016 April 30, 2016 $ $ $ $ $ $ $ $ Market Price High 19.37 $ 14.46 $ 14.41 $ 15.85 $ 18.91 $ 19.37 $ 17.92 $ 16.90 $ Cash Dividends per Low Common Share 12.77 $ 0.125 10.62 $ 0.125 10.85 $ 0.125 13.08 $ 0.125 14.45 0.125 16.80 $ 0.125 13.39 $ 0.125 13.12 $ 0.125 Fiscal 2017 and Fiscal 2016, we paid quarterly dividends as shown in the table above. The payment of future dividends is discretion of our Board of Directors (the "Board") and is based on future earnings, cash flow, financial condition, capital ements, changes in U.S. taxation and other relevant factors. It is anticipated that any future dividends paid will be declared quarterly basis