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.

Required: 1. Which of the two basic reporting approaches for the cash flows from operating activities did the company adopt? 2. What amount of tax payments did the company make during the current year? 3. Explain why the terms "stock compensation" and "loss on impairment and write-off of fixed assets"

were added in the reconciliation of net income to net cash provided by operating activities. 4. What was free cash flow for the year ended February 3, 2001 ? 5. Has the company paid cash dividends during the last three years? How did you know?