American Eagle Income Statement

When dealing with a company, you need to understand the business operating cycle and how business activities affect the income statement. In this paper, my readers will learn about American eagle outfitter
Let us look into the products that American Eagle sells. American Eagle was founded in
1977. The main focus is denim. They also sell pants, shirts, sweaters, fleece, outerwear, graphic t-shirts footwear and accessories. American eagle sells clothing apparel for teens, as well as adults. This consists of pants, shirts, bras underwear and swimwear. They also have aerie* brand. This line is not only intimate, but it also focuses on personal care products for women.
American Eagle last year-end report was on January 31, 2015. In that year they made $3,249, which was down from the year 2013 in which they made $4,481. Although, this was up from last year in 2014 they made $2,205.

We will now look into three out of the four financial statements.

This will be the balance sheet, income statements, and cash flow statements. What we want to determine is how many years does each complete. Let us look at the balance sheet. It represented February 2014-January 2015. The Income statement was February 2013-Janurary 2015, and the cash flow statement was February 2013-Janurary 2015.
The amount of net income for the most recent year was $80,322. This was reported in the year of 2015. That income was down significally from the last three years reported.
According to the financial data the latest revenue recorded is 3,282,867. This was the year of January 31, 2015. This amount was down from the previous three years.
According to McGraw-Hill (2017 pg. 25) “Congress created the Securities and

Exchange
Commission (SEC) and gave it broad powers to determine the measurement rules for financial statements that companies issuing stock to the public (publicly traded companies) must provide

to stockholders.” This all lead the way to putting measures in place, to control inaccurate reporting. This practices lead to such acts as the Ponzi scheme. In order to control this issue, there have been steps put in place. One is being External Auditors. This is an independent company that will audit the company paperwork to make sure they are not practicing unethical behaviors. American Eagle was audited by Ernst & Young LLP and it found that the paperwork be presented fairly.

Reference
Bethel University (2017). Quantitative approaches to managerial decision making. Boston: McGraw-Hill.