Comparing Companies within an IndustryRefer to the financial statements of American Eagle...

Comparing Companies within an Industry

Refer to the financial statements of American Eagle Outfitters in Appendix B and Urban Outfitters in Appendix C.

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 year 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:

Cash equivalents are short-term investments readily convertible to cash whose value is unlikely to change.

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?