To complete the required items below, refer to the following The financial statements of American Eagle Outfitters for the year ended January 31, 2015 provided on D2L The financial statements of Urban Outfitters for the year ended January 31, 2015 provided on D2L The Industry Ratio Report provided in Appendix D at the end of the text (and also provided on D2L) Required How much inventory does American Eagle hold at the end of the most recent period (January 31, 2015) Estimate the amount of merchandise that American Eagle purchased during the year ended January 31, 2015 ( Hint Use the cost of goods sold equation and consider costs of goods sold to include certain buying, occupancy, and warehousing expenses) What method does American Eagle use to determine the cost of its inventory Compute the inventory turnover ratio for both American Eagle and Urban Outfitters for the year ending in January 2015 What do you infer from the difference Compare the inventory turnover ratio for both companies to the industry average Are these two companies doing better or worse than the industry average in turning over their inventory https drive google com file d 0B3ihUdn xWrNkZWV1dNN1NvMWc view usp sharing https drive google com file d 0B3ihUdn xWrZWhCYmFRakMtZTA view usp sharing 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 17 outstanding for each quarter and the full year are calculated independently Fiscal 2014 uarters Ended November 1, May 3, 2014 August 2 2014 January 31, 2014 2015 (In thousands, except per share amounts) Total net revenue Gross profit Income from continuing operations Loss from discontinued operations, net of tax Net income Basic per common share amounts $646,129 $710,595 $ 854,290 $1,071,853 $225,845 $237,547$ 315,472$ 375,810 70,073 8,465 $ 3,866$ 5,813$ 9,035 $ 61,608 3,866 5,813 9,035 Income from continuing operations Loss from discontinued operations, net of tax Basic net income per common share $0 02 $0 03 0 05 0 36 0 04 $ 0 02 0 03 0 05 0 32 Diluted per common share amounts $0 02 $0 03 0 05 0 36 Income from continuing operations Loss from discontinued operations, net of tax Diluted net income per common share 0 04) $ 0 02 0 03 0 05 0 32 68

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To complete the required items below, refer to the following: The financial statements of American Eagle Outfitters for the year ended January 31, 2015 provided

To complete the required items below, refer to the following:

The financial statements of American Eagle Outfitters for the year ended January 31, 2015 provided on D2L.

The financial statements of Urban Outfitters for the year ended January 31, 2015 provided on D2L.

The Industry Ratio Report provided in Appendix D at the end of the text (and also provided on D2L).

Required:

How much inventory does American Eagle hold at the end of the most recent period (January 31, 2015)?

Estimate the amount of merchandise that American Eagle purchased during the year ended January 31, 2015 (Hint: Use the cost of goods sold equation and consider costs of goods sold to include certain buying, occupancy, and warehousing expenses).

What method does American Eagle use to determine the cost of its inventory?

Compute the inventory turnover ratio for both American Eagle and Urban Outfitters for the year ending in January 2015. What do you infer from the difference?

Compare the inventory turnover ratio for both companies to the industry average. Are these two companies doing better or worse than the industry average in turning over their inventory?

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image text in transcribed https://drive.google.com/file/d/0B3ihUdn_-xWrNkZWV1dNN1NvMWc/view?usp=sharing https://drive.google.com/file/d/0B3ihUdn_-xWrZWhCYmFRakMtZTA/view?usp=sharing

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 17. outstanding for each quarter and the full year are calculated independently. Fiscal 2014 uarters Ended November 1, May 3, 2014 August 2 2014 January 31, 2014 2015 (In thousands, except per share amounts) Total net revenue Gross profit Income from continuing operations Loss from discontinued operations, net of tax Net income Basic per common share amounts: $646,129 $710,595 $ 854,290 $1,071,853 $225,845 $237,547$ 315,472$ 375,810 70,073 8,465 $ 3,866$ 5,813$ 9,035 $ 61,608 3,866 5,813 9,035 Income from continuing operations Loss from discontinued operations, net of tax Basic net income per common share $0.02 $0.03 0.05 0.36 0.04 $ 0.02 0.03 0.05 0.32 Diluted per common share amounts: $0.02 $0.03 0.05 0.36 Income from continuing operations Loss from discontinued operations, net of tax Diluted net income per common share 0.04) $ 0.02 0.03 0.05 0.32 68