Refer to the financial statements of American Eagle Outfitters given in Appendix B and Abercrombie

& Fitch given in Appendix C, and the Industry Ratio Report given in Appendix D at the end of this book or open file CP8-3.xls in the Annual Report Cases directory on the student CD-ROM.

Required: 1. Compute the percentage of net fixed assets to total assets for both companies for the most recent year. Why do the companies differ? 2. Compute the percentage of the fixed assets that have been depreciated for both companies for the most recent year. Why do you think the percentages differ? 3. Compute the fixed asset turnover ratio for the most recent year presented for both companies.

Which has higher asset efficiency? Why? 4. Compare the fixed asset turnover ratio for both companies to the industry average. Are these companies doing better or worse than the industry average in asset efficiency?