MBA6014_Unit2_CP3_2

# MBA6014_Unit2_CP3_2 - CP3-2 Finding Financial Information...

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CP3-2 Finding Financial Information LO3-2, 3-4, 3-6 Refer to the financial statements of Urban Outfitters in Appendix C at the end of the b Required: 1. What is the company's revenue recognition policy? (Hint: Look in the notes to the 2. Assuming that \$50 million of cost of sales was due to noninventory purchase expe much inventory did the company buy during the year? (Hint: Use a T-account of inve INVENTORY (in thousands) Beginning 229,561,000 NA Purchases 20,512,000 NA Ending 250,073,000 NA Inventory purchased during the year: \$ 20,512,000 AS SHOWN IN ABOV 3. Calculate selling, general, and administrative expenses as a percent of sales for ea Year Ended SG&A Expenses / Net Sales Revenue = Percentage 2012 \$ 575,811,000 \$ 2,473,801,000 23.3% 2011 522,418,000 2,274,102,000 23.0% 2010 447,151,000 1,937,815,000 23.1% By what percent did these expenses increase or decrease from fiscal years ended 201 (Hint: Percentage Change = [Current Year Amount − Prior Year Amount]/Prior Year A % Change Incr. or Decr. Between years ended 2011 and 2012: 10.2% Decrease Between years ended 2010 and 2011: 16.8% Increase 4. Compute the company's net profit margin for each year presented. (Dollars in tho

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