Student Name:
Class:
HIGHLIGHT CONSTRUCTION COMPANY
For the Year Ended December 31, 2014
HIGHLIGHT CONSTRUCTION COMPANY
Requirement 3:
Requirement 2:
Problem 01-01
McGraw-Hill
Instructor
For the Year Ended December 31, 2014
Income Statement
HIGHLIGHT CONSTRUCTION COMPANY
Requirement 1:
25,600$
10,800
81,000
42,000
46,140
2,520
128,400
80,200
?
87,000
10,000
Given Data P01-01:
Cash
Receivables from customers (all considered collectible)
Inventory of merchandise (physical count priced at cost)
Equipment owned, at cost less used portion
Accounts payable owed to suppliers
HIGHLIGHT CONSTRUCTION COMPANY
Common stock (December 31, 2014)
Dividends declared and paid during 2014
Salary payable for 2014
Total sales revenue
Expenses, including cost of merchandise sold
(excluding income taxes)
Income taxes expense at 30% x pretax income,
all paid during 2014
Student Name:
Class:
15,000$
700
15,700$
1,230$
250
110
80
5,400
190
25
125
110
78
600
8,198
7,502$
Correct!
Problem 01-02
McGraw-Hill/Irwin
Instructor
For the Three Months Ended August 31, 2014
Income Statement
JAMES COOK LAWN SERVICE
Revenues from services:
Lawn service – cash
– credit
Gas, oil and lubrication
Expenses:
Total revenues
Pickup repairs
Repair of mowers
Miscellaneous supplies used
Helpers (wages)
Payroll taxes
Net income
Total expenses
Preparation of payroll tax forms
Insurance
Telephone
Interest expense on note paid
Equipment use cost (depreciation)
1,800$
900
3,000
78
15,000
1,050
250
110
80
5,400
190
25
125
110
3,078
700
180
600
Given Data P01-02:
Paid for used pickup truck
Paid for mowers, trimmers, and tools
Loan acquired, payable at end of 3 months
Interest payable on loan at end of 3 months
JAMES COOK LAWN SERVICE
Collections from customers
Paid for gas, oil, and lubrication
Paid for pickup repairs
Paid for mower repair
Paid for miscellaneous supplies used
Paid for helpers
Owes for gas and oil
Truck and equipment use cost (depreciation)
Paid for payroll taxes
Paid for preparation of payroll tax forms
Paid for insurance
Paid for telephone
Paid to pay off note, including interest
Uncollected revenue for services rendered
Required:
1.
2.
3. Growth during a period is calculated as:
Ending amount – Beginning amount
————————————————— X 100 = Growth rate
Beginning amount
growth in net sales during the most recent year?
CP1-3 Comparing Companies within an Industry
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 2012 year-end may be labeled as Fiscal 2011 since the
year actually has more months that fall in the 2011 calendar yher than in the 2012 calendar year.)
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?
Which company had the highest growth in total assets during the most recent year? Which company had the highest
2.67
Company
Name
Ticker
Symbol
1.48 ANF
ARO
AEO
4.92 ASNA
100.820 days BWS
97.49 CHS
12.63 days PSS
7.43 DDS
1.75 DSW
11.55 FL
GCO
GES
42.47% JOSB
12.37% SKS
5.40% SIG
13.61% SSI
9.09% BKE
1.81 PLCE
FINL
MW
92.35 URBN
Total Debt/Total Equity
0.70
1.70
15.24%
1.49%
5.55%
8.87%
2.62
16.10
INDUSTRY RATIO REPORT
CP1-3 Home
Retail Family Clothing Stores
Liquidity
COMPANIES USED IN INDUSTRY ANALYSIS
Current Ratio
Quick Ratio
Abercrombie & Fitch
Aeropostale Inc.
Activity
American Eagle Outfitters
Inventory Turnover
Ascena Retail Group, Inc.
Days to Sell Inventory
Brown Shoe Company
Receivables Turnover
Chico’s FAS Inc.
Average Collection Period
Collective Brands Inc.
Fixed Asset Turnover
Dillard’s Inc.
Total Asset Turnover
DSW Inc.
Accounts Payable Turnover
Foot Locker Inc.
Genesco Inc.
Profitability
Guess? Inc.
Gross Profit Margin
Jos. A. Bank Clothiers Inc.
Operating Profit Margin
Saks Inc.
Net Profit Margin
Signet Jewelers Ltd.
Return on Equity
Stage Stores Inc.
Return on Assets
The Buckle Inc.
Quality of Income
The Children’s Place
The Finish Line Inc.
Leverage
The Men’s Warehouse Inc.
Times Interest Earned
Urban Outfitters
Total Assets/Total Equity
Dividends
Dividend Payout
Dividend Yield
Other
Advertising-to-Sales
Sales Growth
Capital Acquisitions Ratio
Price/Earnings
January 28, January 29,
2012 2011
$ 719,545 $ 667,593
25,499 67,102
378,426 301,208
40,310 36,721
74,947 53,727
48,761 48,059
1,287,488 1,174,410
582,162 643,120
39,832 7,485
11,469 11,472
13,467 19,616
16,384 23,895
$ 1,950,802 $ 1,879,998
AMERICAN EAGLE OUTFITTERS, INC.
CP1-3 Home
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
ASSETS
Current assets:
Cash and cash equivalents
Short-term investments
Merchandise inventory
Accounts and note receivable
Prepaid expenses and other
Deferred income taxes
Total current assets
Property and equipment, at cost, net of accumulated depreciation
Intangible assets, at cost, net of accumulated amortization
Goodwill
Non-current deferred income taxes
Other assets
Total assets
$ 183,783 $ 167,723
42,625 34,954
76,921 70,390
20,135 32,468
44,970 41,001
15,066 16,203
21,901 25,098
405,401 387,837
71,880 78,606
35,471 38,671
21,199 23,813
128,550 141,090
– –
– –
2,496 2,496
552,797 546,597
28,659 28,072
1,771,464 1,711,929
(938,565) (938,023)
1,416,851 1,351,071
$ 1,950,802 $ 1,879,998
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
Accrued compensation and payroll taxes
Accrued rent
Accrued income and other taxes
Unredeemed gift cards and gift certificates
Current portion of deferred lease credits
Other liabilities and accrued expenses
Total current liabilities
Non-current liabilities:
Deferred lease credits
Non-current accrued income taxes
Other non-current liabilities
Total non-current liabilities
Commitments and contingencies
Retained earnings
Treasury stock, 55,718 and 55,200 shares, respectively, at cost
Total stockholders‘ equity
Total liabilities and stockholders’ equity
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; 249,566 and 249,566 shares
issued; 193,848 and 194,366 shares outstanding , respectively
Contributed capital
Accumulated other comprehensive income
January 28, January 29, January 30,
2012 2011 2010
$ 3,159,818 $ 2,967,559 $ 2,940,269
2,031,477 1,796,600 1,766,839
1,128,341 1,170,959 1,173,430
735,828 713,197 725,278
20,730 – –
140,647 140,501 137,760
231,136 317,261 310,392
– (24,426) (2,749)
5,874 2,249 (3,268)
237,010 295,084 304,375
85,305 113,150 90,977
151,705 181,934 213,398
– (41,287) (44,376)
$ 151,705 $ 140,647 $ 169,022
$ 0.78 $ 0.91 $ 1.04
– (0.21) (0.22)
$ 0.78 $ 0.70 $ 0.82
$ 0.77 $ 0.90 $ 1.02
– (0.20) (0.21)
$ 0.77 $ 0.70 $ 0.81
194,445 199,979 206,171
196,314 201,818 209,512
AMERICAN EAGLE OUTFITTERS, INC.
CP1-3 Home
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended
(In thousands, except per share amounts)
Net sales
Cost of sales, including certain buying, occupancy and warehousing expenses
Gross profit
Selling, general and administrative expenses
Loss on impairment of assets
Depreciation and amortization expense
Operating income
Realized loss on sale of investment securities
Other income (expense), net
Income before income taxes
Provision for income taxes
Income from continuing operations
Loss from discontinued operations, net of tax
Net income
Basic income per common share:
Diluted net income per common share
Weighted average common shares outstanding – basic
Weighted average common shares outstanding – diluted
Income from continuing operations
Loss from discontinued operations
Basic net income per common share
Diluted income per common share:
Income from continuing operations
Loss from discontinued operations
January 28, January 29, January 30,
2012 2011 2010
$ 151,705 $ 140,647 $ 169,022
– (1,140) 14,506
– 7,541 940
587 4,833 15,781
587 11,234 31,227
$ 152,292 $ 151,881 $ 200,249
AMERICAN EAGLE OUTFITTERS, INC.
CP1-3 Home
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Years Ended
Foreign currency translation gain
Other comprehensive income
Comprehensive income
(In thousands)
Net income
Other comprehensive :
Temporary (impairment) recovery related to investment securities, net of tax
Reclassification adjustment for realized losses in net income related to investment securities, net of tax
Accumulated
Shares Other
Outstanding Common Contributed Retained Treasury Comprehensive Stockholders’
(1) Stock Capital Earnings Stock (2) Income (loss) Equity
205,281 $ 2,485 $ 513,574 $ 1,694,161 $ (786,800) $ (14,389) $ 1,409,031
41 1 39,903 – – – 39,904
(18) – – – (247) – (247)
1,528 – – (15,228) 27,792 – 12,564
– – – 169,022 – – 169,022
– – – – 31,227 31,227
– – 922 (83,906) – – (82,984)
206,832 2,486 554,399 1,764,049 (759,255) 16,838 1,578,517
997 10 36,229 – – – 36,239
(15,500) – – – (216,070) – (216,070)
(1,035) – – – (18,041) – (18,041)
3,072 – (45,841) (7,791) 55,343 – 1,711
– – – 140,647 – – 140,647
– – – – – 11,234 11,234
– – 1,810 (184,976) – – (183,166)
194,366 2,496 546,597 1,711,929 (938,023) 28,072 1,351,071
– – 10,532 – – – 10,532
(1,365) – (15,160) – (15,160)
(145) – – – (2,189) – (2,189)
992 – (5,997) (4,261) 16,807 – 6,549
– – – 151,705 – – 151,705
– – – – – 587 587
– – 1,665 (87,909) – – (86,244)
$ 193,848 $ 2,496 $ 552,797 $ 1,771,464 $ (938,565) $ 28,659 $ 1,416,851
Note 1
Note2
AMERICAN EAGLE OUTFITTERS, INC.
CP1-3 Home
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except per share amounts)
Balance at January 31, 2009
Stock awards
Repurchase of common stock from employees
Reissuance of treasury stock
Net income
Other comprehensive income, net of tax
Cash dividends and dividend equivalents ($0.40 per share)
Balance at January 30, 2010
Stock awards
Repurchase of common stock as part of publicly announced programs
Repurchase of common stock from employees
Reissuance of treasury stock
Net income
Other comprehensive income, net of tax
Cash dividends and dividend equivalents ($0.93 per share)
Balance at January 29, 2011
Cash dividends and dividend equivalents ($0.44 per share)
Balance at January 28, 2012
600,000 authorized, 249,566 issued and 193,848 outstanding, $0.01 par value common stock at January 28, 2012; 600,000 authorized, 249,566
issued and 194,366 outstanding, $0.01 par value common stock at January 29, 2011; 600,000 authorized, 249,561 issued and 206,832
outstanding (excluding 992 shares of non-vested restricted stock), $0.01 par value common stock at January 30, 2010; The Company has 5,000
authorized, with none issued or outstanding, $0.01 par value preferred stock at January 28, 2012, January 29, 2011, and January 30, 2010.
55,718 shares, 55,200 shares, and 41,737 shares at January 28, 2012, January 29, 2011, and January 30, 2010, respectively. During Fiscal
2011 and Fiscal 2010 and Fiscal 2009, 992 shares, 3,072 shares and 1,528 shares, respectively, were reissued from treasury stock for the
issuance of share-based payments.
Stock awards
Repurchase of common stock as part of publicly announced programs
Repurchase of common stock from employees
Reissuance of treasury stock
Net income
Other comprehensive income, net of tax
January 28, January 29, January 30,
2012 2011 2010
$ 151,705 $ 140,647 $ 169,022
– 41,287 44,376
$ 151,705 $ 181,934 $ 213,398
143,156 145,548 139,832
12,341 25,457 34,615
4,207 11,885 (36,027)
356 15,648 7,995
(373) (12,499) (2,812)
(325) 117 6,477
20,730 – –
– 25,674 3,689
(77,311) 18,713 (33,699)
(3,589) (3,790) 6,656
(21,261) (9,045) 12,916
2,444 (1,380) 1,146
17,934 5,232 8,358
3,979 1,713 (3,591)
(7,837) (7,451) 4,667
Accrued compensation and payroll taxes
7,677 (19,618) 25,841
(15,515) 11,999 12,858
938 12,457 (1,993)
87,551 220,660 186,928
239,256 402,594 400,326
(100,135) (84,259) (127,080)
(34,187) (2,801) (2,003)
(193,851) (62,797) –
240,797 177,472 80,353
(87,376) 27,615 (48,730)
(3,256) (2,590) (2,015)
– (30,000) (45,000)
(15,160) (216,070) –
Repurchase of common stock as part of publicly announced programs
(2,189) (18,041) (247)
5,098 7,272 9,044
373 12,499 2,812
– (6,434) (1,414)
(85,592) (183,166) (82,985)
(100,726) (436,530) (119,805)
798 1,394 3,030
– (21,434) (13,864)
– (6) (339)
– – –
– – –
– (21,440) (14,203)
51,952 (26,367) 220,618
667,593 693,960 473,342
$ 719,545 $ 667,593 $ 693,960
AMERICAN EAGLE OUTFITTERS, INC.
CP1-3 Home
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended
(In thousands)
Operating activities:
Net income
Loss from discontinued operations, net of tax
Income from continuing operations
Adjustments to reconcile income to net cash provided by operating activities:
Depreciation and amortization
Share-based compensation
Provision for deferred income taxes
Tax benefit from share-based payments
Excess tax benefit from share-based payments
Foreign currency transaction (gain) loss
Loss on impairment of assets
Realized investment losses
Changes in assets and liabilities:
Merchandise inventory
Accounts receivable
Prepaid expenses and other
Other assets
Accounts payable
Unredeemed gift cards and gift certificates
Deferred lease credits
Accrued income and other taxes
Accrued liabilities
Total adjustments
Net cash provided by operating activities from continuing operations
Investing activities:
Capital expenditures for property and equipment
Acquisition of intangible assets
Purchase of available-for-sale securities
Sale of available-for-sale securities
Net cash (used for) provided by investing activities from continuing operations
Financing activities:
Payments on capital leases
Repayment of note payable
Net cash used for financing activities
Repurchase of common stock from employees
Net proceeds from stock options exercised
Excess tax benefit from share-based payments
Cash used to net settle equity awards
Cash dividends paid
Net cash used for financing activities from continuing operations
Effect of exchange rates on cash
Cash flows of discontinued operations
Net cash used for operating activities
Net cash used for investing activities
Effect of exchange rates on cash
Net cash used for discontinued operations
Net (increase) decrease in cash and cash equivalents
Cash and cash equivalents – beginning of period
Cash and cash equivalents – end of period
2012 2011
$ 145,273 $ 340,257
89,854 116,420
36,673 36,502
250,073 229,561
69,876 66,886
5,243 14,351
596,992 803,977
684,979 586,346
126,913 351,988
74,824 52,010
1,483,708$ 1,794,321$
95,754 82,904
15,630 20,212
122,082 107,908
233,466 211,024
183,974 171,749
417,440 382,773
– –
15 17
– 27,603
1,077,765 1,394,190
(11,512) (10,262)
1,066,268 1,411,548
Total Liabilities and Shareholders’ Equity
URBAN OUTFITTERS, INC.
CP1-3 Home
Consolidated Balance Sheets
(in thousands, except share and per share data)
January 31,
ASSETS
Current Assets:
Cash and cash equivalents
Marketable securities
Accounts receivable, net of allowance for doubtful accounts of $1,614
and $1,015, respectively
Inventories
Prepaid expenses and other current assets
Deferred taxes
Total current assets
Property and equipment, net
Marketable securities
Deferred income taxes and other assets
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
164,413,427 issued and outstanding, respectively
Current Liabilities:
Accounts payable
Accrued compensation
Accrued expenses and other current liabilities
Total current liabilities
Deferred rent and other liabilities
Total Liabilities
Commitments and contingencies (see Note 12)
Shareholders’ equity:
Preferred shares; $.0001 par value, 10,000,000 shares authorized, none issued
Common shares; $.0001 par value, 200,000,000 shares authorized, 144,633,007 and
Additional paid-in capital
Retained earnings
Accumulated other comprehensive (loss) income
Total Shareholders’ Equity
2012 2011 2010
2,473,801$ 2,274,102$ 1,937,815$
1,613,265 1,337,482 1,151,670
860,536 936,620 786,145
575,811 522,417 447,161
284,725 414,203 338,984
5,120 4,669 6,290
553 486 463
(1,567) (2,150) (1,331)
288,831 417,208 344,406
103,580 144,250 124,513
185,251$ 272,958$ 219,893$
1.20$ 1.64$ 1.31$
1.19$ 1.60$ 1.28$
154,025,589 166,896,322 168,053,502
156,191,289 170,333,550 171,230,245
URBAN OUTFITTERS, INC.
CP1-3 Home
Consolidated Statements of Income
(in thousands, except share and per share data)
Fiscal Year Ended January 31,
Net sales
Cost of sales, including certain buying, distribution
and occupancy costs
Gross profit
Selling, general and administrative expenses
Income from operations
Interest income
Other income
Other expenses
Income before income taxes
Income tax expense
Basic
Diluted
Net income
Net income per common share:
Basic
Diluted
Weighted average common shares outstanding:
Accumulated
Additional Other
Comprehensive Number of Par Paid-in Retained Comprehensive
Income Shares Value Capital Earnings Loss Total
167,712,088 17$ 170,166$ 901,339$ (17,747)$ 1,053,775$
219,893$ – – – 219,893 – 219,893
7,173 – – – – 7,173 7,173
1,480 – – – – 1,480 1,480
228,546$
– – 4,766 – – 4,766
846,283 – 3,250 – – 3,250
– – 6,438 – – 6,438
168,558,371 17 184,620 1,121,232 (9,094) 1,296,775
272,958 – – – 272,958 – 272,958
(429) – – – – (429) (429)
(739) – – – – (739) (739)
271,790$
– – 10,725 – – 10,725
2,256,273 – 24,129 – – 24,129
12,847 12,847
(6,401,217) – (204,718) – – (204,718)
164,413,427 17 27,603 1,394,190 (10,262) 1,411,548
185,251 – – – 185,251 – 185,251
(2,285) – – – – (2,285) (2,285)
1,035 – – – – 1,035 1,035
184,001$
– – 3,068 – – 3,068
993,923 – 4,134 – – 4,134
8,995 8,995
(20,774,343) (2) (43,800) (501,676) – (545,478)
144,633,007 15$ –$ 1,077,765$ (11,512)$ 1,066,268$
URBAN OUTFITTERS, INC.
CP1-3 Home
Consolidated Statements of Shareholders’ Equity
(in thousands, except share data)
Common Shares
Balances as of January 31, 2009
Net Income
Foreign currency translation
Unrealized gains on marketable securities, net of tax
Comprehensive income
Share-based compensation
Stock options and awards
Tax effect of share exercises
Balances as of January 31, 2010
Net income
Foreign currency translation
Unrealized losses on marketable securities, net of tax
Comprehensive income
Share-based compensation
Stock options and awards
Tax effect of share exercises
Share Repurchases
Balances as of January 31, 2011
Net income
Foreign currency translation
Balances as of January 31, 2012
Unrealized gains on marketable securities, net of tax
Comprehensive income
Share-based compensation
Stock options and awards
Tax effect of share exercises
Share repurchases
2012 2011 2010
185,251$ 272,958$ 219,893$
108,112 101,105 92,350
(12,150) (8,727) 2,161
(8,995) (12,847) (6,438)
3,068 10,725 4,766
857 119 339
(251) 1,835 (1,825)
(20,817) (43,372) (15,544)
6,317 14,825 (25,619)
21,310 48,492 55,311
282,702 385,113 325,394
(190,010) (143,642) (109,260)
(169,467) (463,129) (806,546)
414,769 571,236 421,040
55,292 (35,535) (494,766)
4,136 24,129 3,250
8,995 12,847 6,438
(545,478) (204,718) –
(532,347) (167,742) 9,688
(631) (603) 2,673
(194,984) 181,233 (157,011)
340,257 159,024 316,035
145,273$ 340,257$ 159,024$
120,847$ 121,341$ 137,490$
21,955$ 8,077$ 12,960$
URBAN OUTFITTERS, INC.
CP1-3 Home
Consolidated Statements of Cash Flows
(in thousands)
Fiscal Year Ended January 31,
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
Provision for deferred income taxes
Excess tax benefit on share-based compensation
Share-based compensation expense
Loss on disposition of property and equipment, net
Changes in assets and liabilities:
Receivables
Inventories
Prepaid expenses and other assets
Accounts payable, accrued expenses and other liabilities
Net cash provided by operating activities
Cash flows from investing activities:
Cash paid for property and equipment
Cash paid for marketable securities
Sales and maturities of marketable securities
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Exercise of stock options
Excess tax benefit of stock options exercises
Share repurchases
Cash paid during the year for:
Income taxes
Non-cash investing activities – Accrued capital expenditures
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
(Decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Supplemental cash flow information: