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 book. Required: 1. What is the company's revenue recognition policy? (Hint: Look in the notes to the financial statements.) Revenue is recognized at the point of sale or when merchandise is shipped to the customers for wholesale or direct to consumer sales. Revenue is recognized at the complation of a job or servic e for landscape sales. 2. Assuming that $50 million of cost of sales was due to noninventory purchase expenses (distribution and occupancy costs), how much inventory did the company buy during the year? (Hint: Use a T-account of inventory to infer how much was purchased.) INVENTORY (in thousands) Inventory purchased during the year: 3. Calculate selling, general, and administrative expenses as a percent of sales for each year presented. (Dollars in thousands.) Year Ended SG&A Expenses / Net Sales Revenue = Percentage 2012 2011 2010 By what percent did these expenses increase or decrease from fiscal years ended 2011 and 2012 and between 2010 and 2011? (Hint: Percentage Change = [Current Year Amount â Prior Year Amount]/Prior Year Amount.) % Change Incr. or Decr. Between years ended 2011 and 2012: Between years ended 2010 and 2011: 4. Compute the company's net profit margin for each year presented. (Dollars in thousands.) Fiscal Year Ended Net Income / Net Sales (or Operating) Revenues = Net Profit Margin Ratio 2012 2011 2010 Explain net profit margin ratio and discuss the results shown above.

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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 book.              Required:                  1. What is the company's revenue recognition policy? (Hint: Look in the notes to the financial statements.)             Revenue is recognized at the point of sale or when merchandise is shipped to the customers for wholesale or direct to consumer sales. Revenue is recognized at the complation of a job or servic e for landscape sales.                         2. Assuming that $50 million of cost of sales was due to noninventory purchase expenses (distribution and occupancy costs), how    much inventory did the company buy during the year? (Hint: Use a T-account of inventory to infer how much was purchased.)              INVENTORY (in thousands)                                            Inventory purchased during the year:                 3. Calculate selling, general, and administrative expenses as a percent of sales for each year presented. (Dollars in thousands.)             Year Ended SG&A Expenses / Net Sales Revenue = Percentage      2012         2011         2010                  By what percent did these expenses increase or decrease from fiscal years ended 2011 and 2012 and between 2010 and 2011?    (Hint: Percentage Change = [Current Year Amount â Prior Year Amount]/Prior Year Amount.)                % Change Incr. or Decr.      Between years ended 2011 and 2012:        Between years ended 2010 and 2011:                 4. Compute the company's net profit margin for each year presented. (Dollars in thousands.)               Fiscal Year Ended   Net Income / Net Sales (or Operating) Revenues = Net Profit Margin Ratio      2012         2011         2010                  Explain net profit margin ratio and discuss the results shown above.

CP12-2	Finding Financial Information		LO12-2, 12-4, 12-6

	Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.

	Required:

	1. Does Urban Outfitters use the direct or indirect method to report cash flows from operating activities?




	2. What amount of tax payments did the company make during the most recent reporting year?
	(Hint: The statement of cash flows may be helpful to answer this question.)







	3. Explain why the âshare-based compensationâ and âdepreciation and amortizationâ items were added in
	the reconciliation of net income to net cash provided by operating activities.







	4. Has the company paid cash dividends during the last three years?



	How do you know?







	5. What was free cash flow for the year ended January 31, 2012? (Dollars in thousands.)

	Cash Flows from


		Free Cash Flow:

CP9-2	Finding Financial Information	LO9-1, 9-5, 9-6

	Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.

	Required:

	1. What is the amount of accrued compensation at the end of the most recent reporting year? (Dollars in thousands.)

	$ 15,630

	2. As reported on the Statement of Cash Flows, by what amount did accounts payable, accrued expenses and other current liabilities
	change over the most recent reporting year? (Dollars in thousands.)



	How did this change affect cash flows from operating activities during the most recent reporting year?





	3. What is the amount of long-term liabilities at the end of the most recent reporting year? (Dollars in thousands.)

CP11-2	Finding Financial Information		LO11-1, 11-3, 11-4, 11-6

	Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.

	Required:

	1. How many shares of common stock are authorized at the end of the current year? How many shares are issued and
	outstanding at the end of the current year?

		shares authorized
		shares issued and outstanding

	2. Did the company pay dividends during the most recent reporting year? If so, what was the total amount of dividends paid
	and how much were they per share?





	3. Does the company have any treasury stock? If so, how much?





	4. Has the company issued a stock dividend or a stock split over the past three reporting years? If so, describe.





	5. Does the company's common stock have a par value? If it does, what is the par value?

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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 book.

	Required:

	1. What is the company's revenue recognition policy? (Hint: Look in the notes to the financial statements.)

	Revenue is recognized at the point of sale or when merchandise is shipped to the customers for wholesale or direct to consumer sales. Revenue is recognized at the complation of a job or servic e for landscape sales.





	2. Assuming that $50 million of cost of sales was due to noninventory purchase expenses (distribution and occupancy costs), how
	much inventory did the company buy during the year? (Hint: Use a T-account of inventory to infer how much was purchased.)

		INVENTORY (in thousands)




	Inventory purchased during the year:

	3. Calculate selling, general, and administrative expenses as a percent of sales for each year presented. (Dollars in thousands.)

	Year Ended	SG&A Expenses /	Net Sales Revenue	= Percentage
	2012
	2011
	2010

	By what percent did these expenses increase or decrease from fiscal years ended 2011 and 2012 and between 2010 and 2011?
	(Hint: Percentage Change = [Current Year Amount â Prior Year Amount]/Prior Year Amount.)

			% Change	Incr. or Decr.
	Between years ended 2011 and 2012:
	Between years ended 2010 and 2011:

	4. Compute the company's net profit margin for each year presented. (Dollars in thousands.)

	Fiscal Year Ended	Net Income /	Net Sales (or Operating) Revenues	= Net Profit Margin Ratio
	2012
	2011
	2010

	Explain net profit margin ratio and discuss the results shown above.