Textbook: Financial Accounting/8th Edition/Libby, Libby, & Short

Refer to financial statements of Urban Outfitters in Appendix C

CP3-2 Finding Financial Information Refer to the financial statements of Urban Outfitters in Appendix c the end of the book. Required: 1. What is the company's revenue recognition policy? Hint: Look in the notes to the financial statements. 2. Assuming that S50 million of cost of sales was due to noninventory purchase empenses (distribution and occupancy costs), how much inventory did the company buy during the year? (Hint: Use a account of inventory to infer how much was purchased.) INVENTORY (in thousands) Inventory purchased during the year: 3. Calculate selling. general, and administrative expenses as a percent of sales for each year presented. (Dollars in thousands. By what percent did these expenses increase or decrease from fiscal years ended 2011 and 2012 and between 2010 and 2011? (Hint: Percentage Change Current Year Amount-Prior Year AmountyPrior Year Amount.) Change Between years ended 2011 and 2012 Between years ended 2010 and 2011: Compute the company's net profit margin for each year presented. (Dellars in thousands) Fiscal Year Ended Net Sales (or Operating -Net Profit Margin Revenues 2010 Explain net profit margin ratio and discuss the results shown above