Student Name:

Class:
Problem 01-01

Requirement 1:
GASLIGHT COMPANY
Income Statement
For the Year Ended December 31, 2011

Total sales revenue $126,000

Total expenses 80,200
Pretax income $45,800
Income tax expense 13,740
Net income $32,060
Correct!

Requirement 2:
GASLIGHT COMPANY
Statement of Retained Earnings
For the Year Ended December 31, 2011

Beginning retained earnings

+ Net income 32,060
- Dividends 10,000
Ending retained earnings $22,060
Correct!
Requirement 3:
GASLIGHT COMPANY
Balance Sheet
At December 31, 2011

Assets:
Cash $24,500
Receivables from customers 10,800
Inventory of merchandise 81,000
Equipment 40,700
Total Assets $157,000
Liabilities: Correct!
Accounts payable $46,140
Salary payable 1,800
Total Liabilities $47,940
Stockholders' equity:
Contributed capital $87,000
Retained earnings 109,060
Total Stockholders' equity 196,060
Total liabilities and stockholders' equity $157,000
Correct!
Given Data P01-01:

GASLIGHT COMPANY

Cash $ 24,500
Receivables from customers 10,800
Inventory of merchandise 81,000
Equipment owned, at cost less used portion 40,700
Accounts payable owed to suppliers 46,140
Salary payable for 2011 1,800
Total sales revenue 126,000
Expenses, including cost of merchandise sold
(excluding income taxes) 80,200
Income taxes expense at 30% x pretax income, ?
all paid during 2011
Contributed capital, 7,000 share outstanding 87,000
Dividends declared and paid during 2011 10,000
 Student Name:
Class:
Problem 01-02

BRIDGET'S LAWN SERVICE

Income Statement
For the Three Months Ended August 31, 2011

Revenues:
Lawn service - cash $12,300
- credit 700
Total revenues $13,000
Expenses:
Gas, oil and lubrication $1,120
Pickup repairs 250
Repair of mowers 110
Miscellaneous supplies used 80
Helpers (wages) 5,400
Payroll taxes 190
Preparation of payroll tax forms 25
Insurance 125
Telephone 110
Interest expense on note paid 65
Equipment use cost (depreciation) 600
Total expenses 8,075
Net income $4,925
Correct!
Given Data P01-02:

BRIDGET'S LAWN SERVICE

Paid for used pickup truck $ 1,500

Paid for mowers, trimmers, and tools 900
Loan acquired, payable at end of 3 months 2,500
Interest payable on loan at end of 3 months 65
Collections from customers 12,300
Paid for gas, oil, and lubrication 940
Paid for pickup repairs 250
Paid for mower repair 110
Paid for miscellaneous supplies used 80
Paid for helpers 5,400
Paid for payroll taxes 190
Paid for preparation of payroll tax forms 25
Paid for insurance 125
Paid for telephone 110
Paid to pay off note, including interest 2,565
Uncollected revenue for services rendered 700
Owes for gas and oil 180
Truck and equipment use cost (depreciation) 600
 CP1-3 Comparing Companies within an Industry

Required:
1. Total assets is a common measure of the size of a company. Which company had the higher total assets at the end of
the most recent year? (Note: some companies will label a year that has a January year-end as having a fiscal
year-end dated one year earlier. For example, a January 2009 year-end may be labeled as Fiscal 2008 since the
year actually has more months that fall in the 2008 calendar yher than in the 2009 calendar year.)

2. Net sales is also a common measure of the size of a company. Which company had the higher net sales for the most
recent year?

3. Growth during a period is calculated as:

Ending amount - Beginning amount

--------------------------------------------------- X 100 = Growth rate
Beginning amount

Which company had the highest growth in total assets during the most recent year? Which company had the highest
growth in net sales during the most recent year?

This workbook is organized as follows:

Sheet Name Contents
CP1-3 (this worksheet) CP1-3 Problem Requirements
Industry Ratio Report Industry Ratio Report
AEO Balance Sheets American Eagle Outfitters, Inc. Consolidated Balance Sheets
AEO Statement of Operations American Eagle Outfitters, Inc. Consolidated Statements of Operations
AEO Income Statements American Eagle Outfitters, Inc. Consolidated Statements of Comprehensive Income
AEO Stmts of Stockholders' Eq American Eagle Outfitters, Inc. Consolidated Statements of Stockholders' Equity
AEO Statements of Cash Flow American Eagle Outfitters, Inc. Consolidated Statements of Cash Flows
Urban Balance Sheets Urban Outfitters, Inc. Consolidated Balance Sheets
Urban Income Statements Urban Outfitters, Inc. Consolidated Statements of Income
Urban Stmts of Stockholders' Eq Urban Outfitters, Inc. Consolidated Statements of Stockholders' Equity
Urban Stmts of Cash Flow Urban Outfitters, Inc. Consolidated Statements of Cash Flows
 INDUSTRY RATIO REPORT
Retail Family Clothing Stores

Liquidity COMPANIES USED IN INDUSTRY ANALYSIS

Current Ratio 2.55 Company
Quick Ratio 1.38 Name
Abercrombie & Fitch
Aeropostale Inc
Activity American Eagle Outfitters
Inventory 5.92 Ann Taylor Stores
Turnover
Days to Sell 70.897 days bebe stores Inc
Inventory
Receivables 54.24 Chico's FAS Inc
Turnover
Average 15.07 days Collective Brands Inc
Collection
Fixed Asset 5.76 Dress Barn Inc.
Period
Turnover
Total Asset 1.90 Foot Locker, Inc
Turnover
Accounts 6.43 Gap Inc
Payable Guess? Inc
Turnover
Profitability J. Crew Group Inc
Gross Profit 38.99% Limited Brands Inc
Margin
Operating 6.24% Nordstrom, Inc.
Profit Margin
Net Profit 3.77% Pacific Sunwear of California Inc
Margin
Return on 13.11% Ross Stores Inc
Equity
Return on 7.17% The Buckle Inc
Assets
Quality of 0.07 The Men's Warehouse Inc
Income 0.72 Urban Outfitters Inc
Leverage Wet Seal Inc.
Times Interest 16.33
Earned
Interest 16.39
Coverage
Total 1.08
Ratio
Debt/Total
Total 1.92
Equity
Assets/Total
Equity
Dividends
Dividend 19.61%
Payout
Dividend Yield 2.22%

Other
Advertising-to- 2.39%
Sales
Sales Growth 2.39%
Capital 1.93
Acquisitions
Price/Earnings 6.81
Ratio
DUSTRY ANALYSIS
Ticker Symbol
ANF
ARO
AEO
ANN
BEBE
CHS
PSS
DBRN
FL
GPS
GES
JCG
LTD
JWN
PSUN
ROST
BKE
MW
URBN
WTSLA
 AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED BALANCE SHEETS

January 31,
(in thousands, except per share amounts) 2009

ASSETS
Current assets:
Cash and cash equivalents $ 473,342
Short-term investments 10,511
Merchandise inventory 294,928
Accounts and note receivable 41,471
Prepaid expenses and other 59,660
Deferred income taxes 45,447
Total current assets 925,359

Property and equipment, at cost, net of accumulated depreciation and amortization 740,240
Goodwill 10,706
Long-term investments 251,007
Non-current deferred income taxes 15,001
Other assets, net 21,363
Total assets $ 1,963,676
 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 152,068
Notes payable $ 75,000
Accrued compensation and payroll taxes 29,417
Accrued rent 64,695
Accrued income and other taxes 6,259
Unredeemed stored value cards and gift certificates 42,299
Current portion of deferred lease credits 13,726
Other liabilities and accrued expenses 18,299
Total current liabilities 401,763

Non-current liabilities:
Deferred lease credits 88,314
Non-current accrued income taxes 39,898
Other non-current liabilities 24,670
Total non-current liabilities 152,882

Commitments and contingencies -

Stockholders’ equity
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding -
Common stock, $0.01 par value; 600,000 shared authorized; 249,328 and 248,763 shares
share issued; 205,281 and 204,480 shares outstanding , respectively 2,485
Contributed capital 513,574
Accumulated other comprehensive (loss) income (14,389)
Retained earnings 1,694,161
Treasury stock, 43,248 and 43,596 shares, repectively, at cost (786,800)
Total stockholders' equity 1,409,031
Total liabilities and stockholders’ equity $ 1,963,676
February 2,
2008

$ 116,061
503,878
286,485
31,920
35,486
47,004
1,020,834

625,568
11,479
165,810
24,238
19,751
$ 1,867,680
$ 157,928
$ -
49,494
62,161
22,803
54,554
12,953
16,285
376,178

70,355
44,837
35,846
151,038

2,481
493,395
35,485
1,601,784
(792,681)
1,340,464
$ 1,867,680
 AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

For the Years Ended

January 1, February 2, February 3,
(In thousands, except per share amounts) 2009 2008 2007
Net sales $ 2,988,866 $ 3,055,419 $ 2,794,409
Cost of sales, including certain buying, occupancy and
warehousin
g expenses 1,814,765 1,632,281 1,453,980
Gross profit 1,174,101 1,423,138 1,340,429
Selling, general and administrative expenses 740,742 715,180 665,606
Depreciation 131,219 109,203 88,033
and
Operating 302,140 598,755 586,790
amortization
income
Other
expense 17,790 37,626 42,277
income, net
Other-than- 22,889 - -
temporary
Income 297,041 636,381 629,067
impairment
before
Provision
charge for 117,980 236,362 241,708
income
income taxes
taxes
Net income $ 179,061 $ 400,019 $ 387,359

Basic income $ 0.87 $ 1.85 $ 1.74

per common
Diluted $ 0.86 $ 1.82 $ 1.70
share
income peraverage common shares outstanding - basic
Weighted 205,169 216,119 222,662
common
Weighted
share average common shares outstanding - diluted 207,582 220,280 228,384
 AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Years Ended

January 1, February 2,
(In thousands) 2009 2008
Net income $ 179,061 $ 400,019
Other comprehensive (loss) income:
Temporary impairment related to ivestment securities, net of tax (22,795) -
Reclassification adjustment for OTTI charges realized in net income
related to ARS 751
Reclassification adjustment for losses realized in net income due to
the sale of available-for-sale securities, net of tax 197 242
Unrealized (loss) gain on investments, net of tax (378) 947
Reclassification adjustment for gain realized in net income realted to the
transfer of investment securities from available-for-sale classification
to trading classification, net of tax - -
Foreign currency translation adjustment (27,649) 12,582
Reclassification adjustment for foreign currenty loss reasinzed in net
income realted to the disposition of National Logistics Services - -
Other comprehensive (loss) income (49,874) 13,771
Comprehensive income $ 129,187 $ 413,790
 CP1-3
COME Home

e Years Ended
February 3,
2007
$ 387,359

356
(191)

(177)
(1,180)

878
(314)
$ 387,045
 AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

Accumulated
Shares Deferred Other
Outstanding Common Contributed Retained Treasury Compensation Comprehensive Stockholders’
(in thousands, except per share amounts) (1) Stock Capital Earnings Stock (2) Expense Income (loss) Equity
Balance at January 31, 2006 221,897 $ 2,416 $ 369,807 $ 978,855 $ (216,513) $ (1,041) $ 22,028 $ 1,155,552
Stock awards 4,556 45 83,615 - - 1,041 - 84,701
Repurchase of common stock as part of publicly
announced programs (5,250) - - (146,485) - - (146,485)
Repurchase of common stock from employees (443) - - - (7,635) - - (7,635)
Cash paid for fractional shares in three-for-two - -
stock split (4) - (113) - - - - (113)
Reissuance of treasury stock 528 - 109 (2,348) 8,007 - - 5,768
Net income - - - 387,359 - - - 387,359
Other comprehensive loss, net of tax - - - - - (314) (314)
Cash dividends ($0.28 per share) - - - (61,521) - - - (61,521)
Balance at February 3, 2007 221,284 2,461 453,418 1,302,345 (362,626) - 21,714 1,417,312
Adoption of FIN 48 - - - (13,304) - (13,304)
Balance at February 4, 2007 221,284 2,461 453,418 1,289,041 (362,626) - 21,714 1,404,008
Stock awards 1,092 20 39,977 - - - - 39,997
Repurchase of common stock as part
of publicly announced programs (18,750) - - - (438,291) - - (438,291)
Repurchase of common stock from employees (415) - - - (12,310) - - (12,310)
Reissuance of treasury stock 1,269 - - (6,480) 20,546 - - 14,066
Net income - - - 400,019 - - 400,019
Other comprehensive income, net of tax - - - - - - 13,771 13,771
Cash dividends ($0.98 per share) - - - (80,796) - - - (80,796)
Balance at February 2, 2008 204,480 2,481 493,395 1,601,784 (792,681) - 35,485 1,340,464
Stock awards 453 4 20,179 420 - - - 20,603
Repurchase of common stock from employees (164) - - - (3,432) - - (3,432)
Reissuance of treasury stock 512 - - (4,710) 9,313 - - 4,603
Net income - - - 179,061 - - - 179,061
Other comprehensive loss, net of tax - - - - - - (49,874) (49,874)
Cash dividends ($0.40 per share) - - - (82,394) - - - (82,394)
Balance at January 31, 2009 $ 205,281 $ 2,485 $ 513,574 $ 1,694,161 $ (786,800) $ - $ (14,389) $ 1,409,031

Note 1 600,000 authorized, 249,328 issued and 205,281 outstanding (excluding 799 shares of non-vested restricted stock), $0.01 par value common stock at January 31,
2009; 600,000 authorized, 248,763 issued and 204,480 outstanding (excluding 687 shares of non-ves

Note2 43,248 shares 43,596 shares and 25,699 shares at January 31, 2009, February 2, 2008, and February 3, 2007, respectively. During Fiscal 2008 and Fiscal 2007,
512 shares and 1,269 shares, respectively, were reissued from treasury stock for the issuance of
 AMERICAN EAGLE OUTFITTERS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended

January 31, February 2, February 3,
(In thousands) 2009 2008 2007
Operating activities:
Net income $ 179,061 $ 400,019 $ 387,359
Adjustments to reconcile income to net cash provided by operating activities:
Depreciation and amortization 133,141 110,753 89,698
Stock-based compensation 20,296 33,670 36,556
Provision for deferred income taxes 24,469 (8,147) (27,572)
Tax benefit from share-based payments 1,121 7,260 25,465
Excess tax benefit from share-based payments (693) (6,156) (19,541)
Foreign currency transaction (gain) loss (1,141) 1,221 687
Loss on impairment of assets 6,713 592 -
Other-than-temporary impairment charge 22,889 - -
Proceeds from sale of trading securities - - 183,968
Changes in assets and liabilities:
Merchandise inventory (13,735) (19,074) (53,527)
Accounts and note receivable (10,094) (5,660) 7,448
Prepaid expenses and other (24,781) (1,334) (4,204)
Other assets, net 390 (3,242) (5,357)
Accounts payable (3,053) (15,559) 32,345
Unredeemed gift cards and gift certificates (11,392) (699) 11,623
Deferred lease credits 18,887 4,640 7,791
Accrued income and other taxes (20,697) (31,416) 43,482
Accrued liabilities (19,188) (2,598) 33,047
Total adjustments 123,132 64,251 361,909
Net cash provided by operating activities 302,193 464,270 749,268
Investing activities:
Capital expenditures (265,335) (250,407) (225,939)
Proceeds from sale of assets - - 12,345
Purchase of available-for-sale securities (48,655) (1,772,653) (1,353,339)
Sale of available-for-sale securities 393,559 2,126,891 915,952
Other investing activities (1,180) (1,170) (140)
Net cash provided by (used for) investing activities 78,389 102,661 (651,121)
Financing activities:
Payments on note payable and capital leases (2,177) (1,912) (3,020)
Proceeds from issuance of note payable 75,000 - 2,025
Repurchase of common stock as part of publicly announced programs - (438,291) (146,485)
Repurchase of common stock from employees (3,432) (12,310) (7,635)
Cash paid for fractional shares in connection with three-for-two stock split - - (113)
Net proceeds from stock options exercised 3,799 13,183 28,447
Excess tax benefit from share-based payments 693 6,156 19,541
Cash dividends paid (82,394) (80,796) (61,521)
Net cash used for financing activities (8,511) (513,970) (168,761)
Effect of exchange rates on cash (14,790) 3,363 (178)
Net (increase) decrease in cash and cash equivalents 357,281 56,324 (70,792)
Cash and cash equivalents - beginning of period 116,061 59,737 130,529
Cash and cash equivalents - end of period $ 473,342 $ 116,061 $ 59,737
 URBAN OUTFITTERS, INC.
Consolidated Balance Sheets
(in thousands, except share and per share data)

January 31,
2009 2008
ASSETS
Current Assets:
Cash and cash equivalents $ 316,035 $ 49,912
Marketable securities 49,948 141,883
Accounts receivable, net of allowance for doubtful accounts of $1,229
and $966, respectively 36,390 14,324
Inventories 169,698 140,377
Prepaid expenses and other current assets 46,412 33,993
Deferred taxes 5,919 4,694
Total current assets 624,402 385,183
Property and equipment, net 505,407 299,291
Marketable securities 155,226 64,748
Deferred income taxes and other assets 43,974 19,983
Total Assets $ 1,329,009 $ 769,205

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Accounts payable 62,955 41,291
Accrued compensation 11,975 12,673
Accrued expenses and other current liabilities 66,220 79,544
Total current liabilities 141,150 133,508
Deferred rent and other liabilities 134,084 74,817
Total Liabilities 275,234 208,325
Commitments and contingencies (see Note 11)
Shareholders' equity:
Preferred shares; $.0001 par value, 10,000,000 shares authorized,
none issued - -
Common shares; $.0001 par value, 200,000,000 shares authorized,
167,712,088 and 166,104,615 issued and outstanding respectively 17 16
Additional paid-in capital 170,166 134,146
Retained earnings 901,339 426,190
Accumulated other comprehensive (loss) income (17,747) 528
Total Shareholders’ Equity 1,053,775 560,880
Total Liabilities and Shareholders' Equity $ 1,329,009 $ 769,205
 URBAN OUTFITTERS, INC.
Consolidated Statements of Income
(in thousands, except share and per share data)

Fiscal Year Ended January 31,

2009 2008 2007
Net sales $ 1,834,618 $ 1,507,724 $ 1,224,717
Cost of sales, including certain buying, distribution
and occupancy costs 1,121,140 930,952 772,796
Gross profit 713,478 576,772 451,921
Selling, general and administrative expenses 414,043 351,827 287,932
Income from operations 299,435 224,945 163,989
Interest income 11,504 9,390 6,531
Other income 694 575 353
Other expenses (2,143) (515) (715)
Income before income tax expense 309,490 234,395 170,158
Income tax expense 110,126 74,164 53,952
Net income $ 199,364 $ 160,231 $ 116,206
Net income per common share:
Basic $ 1.20 $ 0.97 $ 0.71
Diluted $ 1.17 $ 0.94 $ 0.69
Weighted average common shares outstanding:
Basic 166,793,062 165,305,207 164,679,786
Diluted 170,860,605 169,640,585 168,652,005
 URBAN OUTFITTERS, INC.
Consolidated Statements of Shareholders' Equity
(in thousands, except share data)

Accumulated
Common Shares Additional Other
Comprehensive Number of Par Paid-in Unearned Retained Comprehensive
Income Shares Value Capital Compensation Earnings Income (loss) Total
Balances as of February 1, 2006 164,831,477 $ 16 $ 138,050 $ (3,905) $ 426,190 $ 528 $ 560,880
Net Income $ 116,206 - - - - 116,206 - 116,206
Foreign currency translation 3,614 - - - - - 3,614 3,614
Unrealized losses on marketable securities,
net of tax 142 - - - - - 142 142
Comprehensive income $ 119,962
Share-based compensation - - 3,497 - - 3,497
Unearned compensation reclass - - (3,905) 3,905 - - -
Exercise of stock options 1,375,986 1 6,350 - - - 6,351
Tax effect of share exercises - 5,394 5,394
Share Repurchase (1,220,000) - (20,801) - - - (20,801)
Balances as of January 31, 2007 164,987,463 17 128,586 - 542,396 4,284 675,283
Net income 160,231 - - - - 160,231 - 160,231
Foreign currency translation 703 - - - - - 703 703
FIN48 adjustment - (652) (652)
Unrealized gains on marketable securities,
net of tax 2,248 - - - - - 2,248 2,248
Comprehensive income $ 163,182
Share-based compensation - - 3,277 - - - 3,277
Exercise of stock options 1,117,152 - 5,000 - - - 5,000
Tax effect of share exercises - - 7,341 - - - 7,341
Balances as of January 31, 2008 166,104,615 17 144,204 - 701,975 7,235 853,431
Net income 199,364 - - - - 199,364 - 199,364
Foreign currency translation (19,866) - - - - - (19,866) (19,866)
Unrealized losses on marketable securities,
net of tax (5,116) - - - - - (5,116) (5,116)
Comprehensive income $ 174,382
Share-based compensation - - 3,637 - - - 3,637
Exercise of stock options 1,607,473 - 8,891 - - - 8,891
Tax effect of share exercises - - 13,434 - - - 13,434
Balances as of January 31, 2009 167,712,088 $ 17 $ 170,166 $ - $ 901,339 $ (17,747) $ 1,053,775
 URBAN OUTFITTERS, INC.
Consolidated Statements of Cash Flows
(in thousands)

Fiscal Year Ended January 31,

2009 2008 2007
Cash flows from operating activities:
Net income $ 199,364 $ 160,231 $ 116,206
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 81,949 70,017 55,713
Provision for deferred income taxes (9,351) (2,782) (4,959)
Tax benefit of stock option exercises (13,434) (7,341) (5,394)
Share-based compensation expense 3,637 3,277 3,497
Loss on disposition of property and equipment, net 61 317 1,393
Changes in assets and liabilities:
Receivables (10,726) (5,462) (6,371)
Inventories (272) (17,430) (13,416)
Prepaid expenses and other assets 9,210 (22,441) 6,848
Accounts payable, accrued expenses and other liabilities (8,868) 75,967 33,600
Net cash provided by operating activities 251,570 254,353 187,117
Cash flows from investing activities:
Cash paid for property and equipment (112,553) (115,370) (212,029)
Cash paid for marketable securities (809,039) (293,633) (182,653)
Sales and maturities of marketable securities 864,685 220,101 193,274
Net cash used in investing activities (56,907) (188,902) (201,408)
Cash flows from financing activities:
Exercise of stock options 8,891 5,000 6,351
Excess tax benefit of stock options exercises 13,434 7,341 5,394
Share repurchases - - (20,801)
Net cash provided by (used in) financing activities 22,325 12,341 (9,056)
Effect of exchange rate changes on cash and cash equivalents (6,224) 212 702
Increase (decrease) in cash and cash equivalents 210,764 78,004 (22,645)
Cash and cash equivalents at beginning of period 105,271 27,267 49,912
Cash and cash equivalents at end of period $ 316,035 $ 105,271 $ 27,267
Supplemental cash flow information:
Cash paid during the year for:
Income taxes $ 115,040 $ 70,765 $ 52,535
Non-cash investing activities - Accrued capital expenditures $ 6,561 $ 6,645 $ 14,618