[Refer to the financial statements ofAmerican Eagle OutfittersinAppendix B,Express, Inc.inAppendix C,and the Industry Ratio Report inAppendix Dat the end of this book.]

Required:

1.What was Advertising Expense for each company for the most recent year?Information regarding advertising expense for both companies can be found in Note 2 of the annual report.

2-a.Compute the percentage of Advertising Expense to Net Sales ratio for the three years reported for both companies.

2-b.Which company incurred the higher percentage each year?

4.Compute each company's total asset turnover ratio for the three years reported.Total asset information for current and prior periods for both companies can be found in Item 6 of the annual report.

4b-1.Compare each company's total asset turnover ratio for the most recent year to the industry average total asset turnover ratio in the Industry Ratio Report.

4b-2.Were these two companies performing better or worse than the industry average?

American Eagle Outfitters Financial Statements: https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/Libby_10e/Libby10e_AppB.pdf

Express Inc: https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/Libby_10e/Libby10e_AppC.pdf

Industry Ratio: https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/Libby_10e/Libby10e_AppC.pdf