Accounting Case

American Eagle Outfitters CP1-1

1. What types of products does it sell? American Eagle Outfitters sells clothing.

2. On what date does American Eagle Outfitters's most recent reporting year end? The most recent reporting year end is January 31, 2009.

3. For how many years does it present complete

a. Balance sheets? 2 years (2008 and 2009)

b. Income statements? 5 years (2005, 2006, 2007, 2008, and 2009)

c. Cash flow statements? 3 years (2007, 2008, and 2009)

4. Are its financial statements audited by independent CPAs? How do you know? Yes, Ernst & Young as of January 31, 2009 and February 8, 2008. This information can be found B-11 in Appendix B in Financial Accounting 7th Edition.

5. Did its total assets increase or decrease over the last year? Over the last year their total assets have increased.

6. How much inventory (in dollars) did the company have as of January 31, 2009 (accountants would call this ending balance)? As of January 31, 2009 American Eagle had $294,928 merchandise inventory.

7. Write out the basic accounting (balance sheet) equation and provide the values in dollars reported by the company as of January 31, 2009.

Assets = Liabilities (Current + Not Current) + Stockholders' Equity

$1,963,676 = ($401,763.000 + $152,882,000) + $1,409,031,000

$1,963,676 = $554,645,000 + $1,409,031,000

$1,963,676 = $1,963,676

Write out the basic accounting (balance sheet) equation and provide the values in dollars reported by the company as of January 31, 2009.

Accounting is fun and makes life bearable.