CP3-2

mba6014_unit2_cp3_2_1.xlsx

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.)
	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)
		- 0
	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				Year not mentioned in the data.
	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 − 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.

CP3-2 Check Figures

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.)
	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 − 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			7.5%
	2011
	2010
	Explain net profit margin ratio and discuss the results shown above.