Chapter 1, Problem 1.1CP

Finding Financial Information

LO1-1

Refer to the financial statements of American Eagle Outfitters in Appendix B at the end of this book.

Required:

Skim the annual report. Look at the income statement, balance sheet, and cash flow statement closely and attempt to infer what kinds of information they report. Then answer the following questions based on the report.

1. 1. What types of products does American Eagle Outfitters sell?
2. 2. On what date does American Eagle Outfitters’s most recent reporting year end?
3. 3. For how many years does it present complete
   1. a. Balance sheets?
   2. b. Income statements?
   3. c. Cash flow statements?
4. 4. Are its financial statements audited by independent CPAs? How do you know?
5. 5. Did its total assets increase or decrease over the last year?
6. 6. How much inventory (in dollars) did the company have as of January 31, 2015 (accountants would call this the ending balance)?
7. 7. Write out the basic accounting (balance sheet) equation and provide the values in dollars reported by the company as of January 31, 2015.