To complete the required items below, refer to the following: The financial statements of American Eagle Outfitters for the year ended January 28, 2012 given in Appendix B at the end of the text. The financial statements of Urban Outfitters for the year ended January 31, 2012 given in Appendix C at the end of the text . The Industry Ratio Report provided in Appendix D at the end of the text .

Required:

**Compute the inventory turnover ratio for both American Eagle and Urban Outfitters for the year ending in January 2012. 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?