The objective of this term project is to test your ability to read and understand annual reports, perform comparative analysis of financial statements, and interpret and communicate financial results to interested parties for informed decision making. The project is an application of several of the concepts, assumptions, principles, and real-world situations presented in chapters 1 to 10 of the book. The project entails comparing financial information between American Eagle Outfitters, Inc. (American Eagle) and The Buckle, Inc. (Buckle) using their 2017 annual reports presented in Appendix A and Appendix B, respectively, in the book, and consists of two parts - Part A and Part B. You are to respond to both parts.

Part A: Details of Part A are in the book. Summary is as follows:

Additional Perspective 1-4 Additional Perspective 2-4 Additional Perspective 3-4 Additional Perspective 4-4 Additional Perspective 5-4 Additional Perspective 6-4 Additional Perspective 7-4 Additional Perspective 8-4 Additional Perspective 9-4 Additional Perspective 10-4 Required:

1. Thoroughly review the annual report of American Eagle presented in Appendix A and annual report of Buckle presented in Appendix B of the book. 2. For each chapter read the applicable "Additional Perspective". For example: Additional Perspective 1-4, on page 53 of the book, relates to the materials presented in chapter 1 of the book. 3. Separately answer the questions that follow each "Perspective", making sure you number and present your answer in exactly the same order as required. For example: there are five parts to chapter 1 "Perspective". List and separately respond to each part. That is, 1. 2. 3. 4. 5.

4. Show calculation for ALL questions that require calculations. Points will be deducted for a correct answer where a calculation showing how you arrived at the answer is not shown. No point will be given for a wrong answer without a calculation shown. 5. Both quality and quantity count. So, make sure you accurately and adequately respond to questions that require explanations. Please note that qualitative (explanations) answers, which may include explaining and comparing the performance of the subject companies based on their current ratios (for example) generally carry more points than quantitative (calculations) answers.

Part B

You are the junior investment advisor of BuckEagle, Inc., a local investment company that has been in existence for 10 years. Your boss, Ms. Mujay Brown is considering BuckEagle to invest $2 million cash either in American Eagle only or in Buckle only.

Required:

Based on your calculations and answers in Part A, write a one FULL page memo to Ms. Brown recommending to her as to which of the two companies - American Eagle or Buckle - BuckEagle should invest in. Your memo should be specific, should include a summary of your answers to Part A, and should adequately support your conclusion and recommendation to Ms. Brown.