1-Section 1- Working with Annual Reports

1-Section 1- - AEM 323 Section Problem Set 1 Covering Material from Chapter 14 “Working with Annual Reports” The following pages are the

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Unformatted text preview: AEM 323 Section Problem Set 1 Covering Material from Chapter 14 “Working with Annual Reports” The following pages are the section material for Section 1. In a departure from normal procedure, this work needs to be completed on your own as “homework” and then reviewed during section. Ultimately, it will need to be handed in to get credit for the section. 1-Finding Financial Information Refer to the annual report, financial statements and SEC form 10-K of Pacific Sunwear of California (PacSun) and American Eagle Outfitters (AEOS) as provided in the lecture packet to answer the following: Required: Read the annual report for PacSun. Look at the income statement, balance sheet, and cash flow statement closely and attempt to infer what kinds of information they report. Then answer the following questions based on the report. 1. What types of products does it sell? 2. Did the Chief Executive Officer (CEO) and Executive Chairman of the Board believe that the company had a good year? What do they cite as indicators of their company’s recent performance? 3. On what date does PacSun’s most recent reporting year end? 4. For how many years does it present complete a. Balance sheets? b. Income statements? c. Cash flow statements? 5. Are its financial statements audited by independent CPAs? How do you know? 6. Did its total assets increase or decrease over the last year? 7. How much inventory (in dollars) did PacSun have as of January 29, 2005 (accountants would call this the ending balance)? Read the documents for AEOS, answer the following: Required: 1. What is the amount of net income for the most recent year? 2. What amount of revenue was earned in the most recent year? 3. How much inventory (in dollars) does the company have as of January 29, 2005? 4. By what amount did cash and cash equivalents change during the most recent year? 5. Who is the auditor for the company? 2-Finding Financial Information Read the annual report for PacSun. Look at the income statement, balance sheet, and cash flow statement closely and attempt to infer what kinds of information they report. Then answer the following questions based on the report. Required: 1. The company shows on the balance sheet that inventories are worth $175,081,000. Does this amount represent the expected selling price? Why or why not? 2. List the types of current obligations this company has. You need not provide the amounts. 3. How much cash did the company spend on purchasing property and equipment each year (capital expenditures)? Where did you find the information?...
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This note was uploaded on 08/31/2010 for the course AEM 3230 taught by Professor Little,j.e. during the Spring '08 term at Cornell University (Engineering School).

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1-Section 1- - AEM 323 Section Problem Set 1 Covering Material from Chapter 14 “Working with Annual Reports” The following pages are the

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