based on information: http://s1.q4cdn.com/457211173/files/doc_financials/2013/Am
ID: 2456875 • Letter: B
Question
based on information: http://s1.q4cdn.com/457211173/files/doc_financials/2013/AmericanEagleOutfittersInc_10K_20140313.pdf
1.What are the amounts American Eagle reports for total assets, total liabilities, and total stockholders’ equity in the balance sheet for the most recent year? Verify that the basic accounting equation balances
2. American Eagle refers to its income statement using another name. What is it?
3.What type of income statement does American Eagle issue (multi-step or single step)? Explain.
4.Who were American Eagle’s external auditors?
5.What does the Report of Independent Registered Public Accounting firm indicate about the amounts represented in the company’s financial statements?
6.What does the Report of Independent Registered Public Accounting firm indicate about American Eagle’s internal controls?
7.In the summary of significant accounting policies, how does American Eagle define cash equivalents?
8.What is the amount of cash and cash equivalents reported in the most two most recent years? By how much has cash and cash equivalents increased/decreased?
9.Determine the amount American Eagle reports for net cash flows from operating, investing, and financing activities in its statement of cash flow. (Note: Include any effect of exchange rates on cash as an additional cash flow. In addition, include net cash used for discontinued operations) Compare your answers to question 8.
10.What are the net sales for the past three years?
11.Where is accounts receivable reported? What is net accounts receivable?
12.Does American Eagle report an allowance for uncollectible accounts in the balance sheet? If so, how much is reported for the most recent year?
13.When does the American Eagle recognize revenue? Is this consistent with the Revenue Recognition Principle?
14.How does American Eagle record the purchase of a gift card?
15.In the summary of significant accounting policies, what is American Eagle’s procedure in accounting for inventory?
16.Calculate American Eagle’s inventory turnover ratio (round to two decimals) and average days in inventory for the most recent year. Use formula given in class, do not use rate given by American Eagle’s annual report.
17.Calculate American Eagle’s gross profit ratio for each of the three years. Use the financial statements to obtain data. Do you notice any trend?
18.For the most recent year, calculate American Eagle’s asset turnover ratio for the current year.
19.Calculate the current ratio for the past two years. Did the current ratio improve or weaken in the more recent years?
20.What was the percentage change in (1) sales and (2) net income from 2012 to 2013 and 2011 to 2012?
21.If American Eagle used $100 million in cash investments to pay $100 million in accounts payable, how would its current ratio and working capital change?
22.Which depreciation method is used by American Eagle? What are the estimated useful lives for buildings, leasehold improvements, and property and equipment?
23.What is the net cost of Property and Equipment at February 1, 2014 and February 2, 2013? What is the trend in property and equipment for the past two years?
24.What is the most common term for the leases? What are the future minimum rental commitments under operating leases at February 1, 2014?
25.How much Goodwill does American Eagle have as of February 1, 2014? Specifically, how did American Eagle obtain its Goodwill?
26.Calculate the debt to equity ratio for the past two years. Did the ratio improve or weaken in the more recent years?
27.What is the par value per share for the common stock?
28.What percentage of American Eagle's authorized stock was issued at February 1, 2014?
29.How many outstanding shares does American Eagle have on February 1, 2014?
30.What are the primary components of American Eagle's cost of goods sales?
31.What account(s) not discussed in ACC 200 is included in Total Shareholder’s Equity?
32.What amount of cash dividends were paid for the year ended February 1, 2014?
33.Did American Eagle have any repurchase of common stock (treasury stock) as part of publicly announced programs? If so, what is the dollar amount?
34.Does American Eagle have any Preferred Stock outstanding?
35.What method does American Eagle use for the Operating Section of the Statement of Cash Flows?
36.What is the amount of depreciation and amortization expense for each of the three years in the financial report as reported in the Statement of Cash Flows?
37.What is the largest reconciling item between net income and net operating cash flows during the most recent year? What is the dollar amount?
38.What is the largest investing activity inflow during the most recent year? What is the dollar amount?
39.What is the largest financing activity outflow during the most recent year? What is the dollar amount?
40.What was the most interesting thing you read in this annual report?
Explanation / Answer
1. American eagle reports followings-
Total assets= $1,694,164
Total liabilities= 415,478+ 112,508= $527,986
Total stockholders' equity= $1,116,178
Assets= stockholers' equity + liabilities
2. It refers income statement as consolidated statements of operations
3. It issues multiple type. It also has comprehensive income
4. The external auditors are Ernst & young LLP
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