You have just been hired as a financial analyst at Baruch College Fund in New York. Your responsibility is to analyze potential investment opportunities and present your research findings to the fund manager. The fund manager has assigned you to analyze the financial positions of two successful retailer companies in USA: American Eagle Outfitters and The Buckle Company. The financial statements issued by American Eagle Outfitters and The Buckle Company in 2020 are in Appendix A and B of the textbook.

You are required to write a two-page, double-spaced memo analyzing the financial statements.[1] Your report should include, but not limited to, the discussions of the questions below that the fund manager has raised. Use these questions as a way to organize your thoughts as you prepare the report. Submit a hard copy of your memo to the fund manager (your recitation instructor) before the due date specified on the syllabus. No late memo will be accepted. In addition, prepare a 1015-minute presentation using PowerPoint to be presented in class on the due date specified on the syllabus. All group members must participate in the presentation.

Part I: American Eagle Outfitters, Inc.

1. Determine whether the trend in net sales has been increasing or decreasing for the past three years.

2. Where is accounts receivable reported? Explain why using net sales to calculate the receivables turnover ratio might not be a good indicator of a company's ability to efficiently manage receivables for a retail company like American Eagle, which typically sells clothing for cash.

3. Does American Eagle report an allowance for uncollectible accounts in the balance sheet? If so, how much is reported for the most recent year

Part II: The Buckle Inc.

1. Determine whether the trend in net sales has been increasing or decreasing for the past three years.

2. In which financial statement is the balance of accounts receivable reported? Explain why using net sales to calculate the receivables turnover ratio might not be a good indicator of a company's ability to efficiently manage receivables for a retail company like The Buckle, which typically sells clothing for cash.

3. Does The Buckle report an allowance for uncollectible accounts in the balance sheet? If so, how much is reported for the most recent year?

Part III: Comparative Analysis

1.Try to estimate each company's ratio of total current receivables to total current assets. Do you see problems with either company's management of receivables?

All information required to answer the question is on ACC 2101 SMAR - Principles of Accounting I am having trouble understanding how to solve the problem so if you can explain it that would be wonderful

AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets Llabilities and Stockholders' Equily Current liabilities: Refer to Notes to Consolidated Financial Statements AMERICAN EAGLE OUTFITTERS, INC. conenlidated Statements of Operations Refer to Notes to Consolidated Financial Statements L. COMMITMENTS AND CONTINGENCIIS Litigation - From time to time, the Company is involved in litigation relating to elaims arising out of its operations in the normal course of business. As of the date of these consolidated financial statements, the Company was not engaged in any legal proceedings that are expected, individually or in the aggregate, to have a material effect on the Company's consolidated results of operations and financial position. L. EARNINGS PER SHARE The following table provides a reconciliation between basic and diluted earnings per share: M. REVENUES The Company is a retailer of medium to better priced casual apparel, footwear, and accessories for fashion conscious young men and women. The Company operates its business as one reportable segment. The Company sells its merchandise through its retail stores and e-Commerce platform. The Company operated 448 stores located in 42 states throughout the United States as of February 1,2020. During fiscal years 2019,2018 , and 2017 , online revenues accounted for 12.3%,11.7%, and 10.7%, respectively, of the Company's net sales. No sales to an individual customer or country, other than the United States, accounted for more than 10.0% of net sales. The following is information regarding the Company's major product lines, stated as a percentage of the Company's net sales: Fiscal Years Ended February 1, Februarv 2. Fahruave 3 AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets Llabilities and Stockholders' Equily Current liabilities: Refer to Notes to Consolidated Financial Statements AMERICAN EAGLE OUTFITTERS, INC. conenlidated Statements of Operations Refer to Notes to Consolidated Financial Statements L. COMMITMENTS AND CONTINGENCIIS Litigation - From time to time, the Company is involved in litigation relating to elaims arising out of its operations in the normal course of business. As of the date of these consolidated financial statements, the Company was not engaged in any legal proceedings that are expected, individually or in the aggregate, to have a material effect on the Company's consolidated results of operations and financial position. L. EARNINGS PER SHARE The following table provides a reconciliation between basic and diluted earnings per share: M. REVENUES The Company is a retailer of medium to better priced casual apparel, footwear, and accessories for fashion conscious young men and women. The Company operates its business as one reportable segment. The Company sells its merchandise through its retail stores and e-Commerce platform. The Company operated 448 stores located in 42 states throughout the United States as of February 1,2020. During fiscal years 2019,2018 , and 2017 , online revenues accounted for 12.3%,11.7%, and 10.7%, respectively, of the Company's net sales. No sales to an individual customer or country, other than the United States, accounted for more than 10.0% of net sales. The following is information regarding the Company's major product lines, stated as a percentage of the Company's net sales: Fiscal Years Ended February 1, Februarv 2. Fahruave 3