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. What was the balance in short-term investments reported by the company on February 3, 2001?

What types of securities were included in this account? 2. How much cash did the company realize from selling short-term securities during the year ended February 3, 2001 ? How large do you think the gain or loss was on these transactions? 3. What was the balance of goodwill reported by the company at February 3, 2001 ? What does the change in this balance from January 29, 2000, imply about corporate acquisition activities in the 2000 fiscal year? 4. What companies did American Eagle acquire in 2000? What accounting method did it use for each acquisition? If it did not disclose the accounting method, can you infer what it was? 5. Did the Schottenstein acquisition occur at arm's length? What could this imply about the amount of payment?