The cash flow statement indicates that operating activities provided $282,702,000 in cash, while financing activities used $ 523,347,000 in cash. Thus, the investing activities were financed primarily by operating activities. The company’s largest (net) is and Equipment, net” of $684,979,000 “Property reported on the balance sheet. The company applicable costs incurred during the application and “capitalizes infrastructure development stage and expenses costs incurred during the planning and operating stage”. This is disclosed in note 2. Buildings are depreciated over useful lives of 39 years. This is disclosed in note 2. Buildings are $118,050,000, which is 9% of the total balance of gross property and equipment. This is disclosed in note 5. 7. 2012 2011 Gross Profit = Gross Profit $860,536 = 0.348 $936,620 = 0.412 Percentage Net Sales 2,473,801 2,274,102 The gross profit percentage decreased from 2011 to 2012. The decrease implies that the company has decreased its ability to charge premium prices or to purchase goods for resale at lower cost. CP5-3. Req. 1. American Eagle Outfitters Urban Outfitters Net Income _ $151,705 _ = 0.079 $185,251 = 0.113 Average $(1,950,802+1,879,998)/2 $(1,483,708 +1,794,321)/2 Total Assets Outfitters had a higher return on assets during the current year. Req. 2. American Eagle Urban Outfitters ROA Analysis Outfitters Net Income 151,705 = 0.048 185,251_ = 0.075 Net Sales 3,159,818 2,473,801
The cash flow statement indicates that operating activities provided $282,702,000 in cash, while financing activities used $ 523,347,000 in cash. Thus, the investing activities were financed primarily by operating activities. The company’s largest (net) is “Property and Equipment, net” of $684,979,000 reported on the balance sheet. The company “capitalizes applicable costs incurred during the application and infrastructure development stage and expenses costs incurred during the planning and operating stage”. This is disclosed in note 2. Buildings are depreciated over useful lives of 39 years. This is disclosed in note 2. Buildings are $118,050,000, which is 9% of the total balance of gross property and equipment. This is disclosed in note 5. 7. 2012 2011 Gross Profit = Gross Profit $860,536 = 0.348 $936,620 = 0.412 Percentage Net Sales 2,473,801 2,274,102 The gross profit percentage decreased from 2011 to 2012. The decrease implies that the company has decreased its ability to charge premium prices or to purchase goods for resale at lower cost. CP5-3. Req. 1. American Eagle Outfitters Urban Outfitters Net Income _ Average Total Assets $151,705 _ = 0.079 $(1,950,802+1,879,998)/2 $185,251 = 0.113 $(1,483,708 +1,794,321)/2 Outfitters had a higher return on assets during the current year. Req. 2. ROA Analysis American Eagle Outfitters Urban Outfitters Net Income Net Sales 151,705 = 0.048 3,159,818 185,251_ = 0.075 2,473,801
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