Question

1. go to www.sec.gov (Links to an external site.)Links to an external site. 2. Hover your cursor over "Filings" in the menu bar across the top 3. click on "company filings search" that pops up when you hover 4. in the FAST SEARCH box on the far right type in "AEO" for the ticker and click "search" for American Eagle. For Buckle type in "BKE". 5. in the "filings" column on the far left look for the most recent "10-K" filing and click on the "interactive data" link for the 10-K annual report in the "format" column 6. in the yellow box on the far left click on "financial statements" and the item will expand 7. select the Financial statement(s) that you need to review to find the answer to the questions.

A. In the summary of significant accounting policies, what method does American Eagle use to accounting for inventory?

FIFO

LIFO

Weighted average

Retail Method

B. Calculate American Eagle's gross profit ratio for the past two years. What is the trend for Gross Profit?

Decreasing

Increasing

remaining the same

V pattern

No answer text provided.

C. For the most recent year, American Eagles gross profit % is higher than Buckles gross profit %.

True

False

D. In the Summary of Significant Accounting Policies under Property and Equipment for American Eagle, what is the estimated useful life for buildings?

_______________

E. In the Notes Tables section for Property and Equipment for American Eagle, what is the Total cost/book value of all Property & Equipment, net of accumulated depreciation at February 3, 2018?

$17.9 million

$1.88 billion

$707.8 million

$724.2 million

Answer 1

A. The Method used By American Eagel as per Accounting Policy is - Retail Method

B. The GP Ratio of American Eagel for 2017 is 37.86%(1366927/3609865*100) and for 2018 is 36.11%(1370505/3795549*100). This shows that the GP ratio is Decreasing.

C. The Recent GP of Buckle for 2018 is 41.60%(380023/913380*100) which is Higher than that of American Eagel for 2018 which is 36.11%. Hence the above statment stands True

D. In Accounting Policies, The Life of Building is 25 Years

E. The Net Book Value of American Legal Property Plant and Equipment is 724.2 Million