Chapter 2 homework - Required 1 Is American Eagle’s company size increasing To answer calculate the percentage in total assets and percentage change

Chapter 2 homework - Required 1 Is American Eagle’s...

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Required: 1. Is American Eagle’s company size increasing? To answer, calculate the percentage in total assets and percentage change in net sales for the most recent year. a. The percentage in total assets = (Jan 31, 2015 total assets- Feb 1, 2014 total assets)/ (Feb 1, 2014 total assets) = ($1,696,908- $1,694,164)/ $1,694,164 = 0.0016…(0.16%) b. Percentage change in net sales = (Jan 31, 2015 total net revenue- Feb 1, 2014 total net revenue)/ (Feb 1, 2014 total net revenue) = ($3,282,867-$3,305,802)/ $3,305,802 = -0.0069…(-0.69%) c. The company total assets are getting larger (0.16%) and their total net sales are getting smaller. This company may be changing the strategy (I think the company size will be increasing). 2. Is American Eagle’s total profitability increasing? Determine your answer by calculating the percentage change in net income for the most recent year. a. The percentage change in net income = (Jan 31, 2015 total net income- Feb 1, 2014 total net income)/ (Feb 1, 2014 total net income) = ($80,322- $82,983)/ $82,983 = -0.03206…(-3.21%) b. Total profitability is decreasing, but this company is changing the strategy to align
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  • Spring '14
  • Revenue, total assets, $1,696,908, $3,282,867, $3,305,802, $80,322

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