Question

You will continue to analyze and interpret the financial statements for American Eagle Outfitters, Inc. Using the financial statements (located in Appendix A: American Eagle Outfitters, Inc., 2020 Annual Report of the required textbook: Financial Accounting), review the company's assets. Consider the following questions: What are the cash needs of the company? What is the value of the company’s cash and cash equivalents? What type of receivables does the company have? Deliverable Requirements: Your evaluation of assets should have at least 5 pages (the title and reference pages are not counted in these 5 pages) as well as follow the requirements below for using the APA style. Your evaluation should include the following: For your evaluation of current assets, present industry findings regarding assets. Address the questions above, and consider their implications to American Eagle Outfitters, Inc. Do not forget to review the notes to the financial statements for additional information about the company’s assets.

Answer 1

The value of cash and cash equivalent of American Eagle Outfitters are:

• 31 Jan 2021 = $850.5 Million
• 1 Feb 2020 = $361.9 Million.

In accounting, cash and its equivalents refer to highly liquid assets that can be quickly converted into cash. Its includes as cash on hand, deposits in checking accounts and short-term investments with maturities of three months or less. They are highly liquid assets that can be quickly changed into cash.

From the 2022 annual report (balance sheet's current assets section) of American Eagle Outfitters Inc, we see that its cash and cash equivalents as on 31 Jan 2021 is $850.5 Million while as on 1 Feb 2020, it is $361.9 Million.