Refer to the financial statements of American Eagle Outfitters given in Appendix B at the end of this book, or open file AEOS.pdf in the Annual Report Cases directory on the student CD-ROM. At the bottom of each statement, the company warns readers to "See notes to consolidated financial statements."

The following questions illustrate the types of information that you can find in the financial statements and accompanying notes. {Hint: Use the notes.)

Required: 1. What subtotals does it report on its income statement? 2. The company spent $87,825,000 on capital expenditures (property, plant, and equipment) this year.

Were operating activities or financing activities the major source of cash for these expenditures?

What was the company's largest asset (net) at the end of the year?

Was women's apparel an increasing or decreasing percentage of its sales over the last three years?

Over what useful lives are buildings depreciated?

What portion of "Accounts and notes receivable" are composed of "Notes receivable"?