P03-04Student Name:Class:Problem 03-04Requirement 3:BRI'S SWEETSIncome Statement (unadjusted)for the Month Ended February 28, 2011Revenues:Sales revenueExpenses:Cost of goods soldAdvertising expenseWages expenseRepairs expenseTotal costs and expensesNet Income0BRI'S SWEETSStatement of Stockholders' Equity (unadjusted)for the Month Ended February 28, 2011TotalContributedRetainedStockholders'CapitalEarningsEquityBeginning, February 1, 2011Additional contributionsNet incomeDividendsEnding, February 28, 2011000BRI'S SWEETSBalance Sheet (unadjusted)At February 28, 2011AssetsCurrent assets:CashAccounts receivableMerchandise inventorySuppliesPrepaid rentTotal current assetsFurniture and fixturesEquipmentTotal Assets0Liabilities and Stockholders' EquityCurrent liabilities:Accounts payableTotal current liabilitiesNote payableTotal LiabilitiesStockholders' Equity0Contributed capitalRetained earningsTotal Stockholders' EquityTotal Liabilities and Stockholders' Equity0Requirement 5:20122013Total Asset Turnover00Evaluation of ratio and promotion decision:

Enter appropriate data in yellow cells. Your answer for "Net Income" will be verified.Enter appropriate data in yellow cells. Your answer for "Retained earnings, February 28, 2003" will be verified.Enter appropriate data in yellow cells. Your answers will be verified.Enter a short answer in the space provided.Enter appropriate data in yellow cells. Your answers will be verified.Enter appropriate data in yellow cells. Your answers will be verified.

Given P03-04Given Data P03-04:BRI'S SWEETSTransactions during February, 2011:(a)Shareholder's contributions received; stock issued27,600(b)Monthly rent on store (paid 3 months)$1,880(c)Purchased candy on account, due in 60 days$5,500(d)Purchased supplies for cash$1,430(e)Negotiated two-year bank loan$11,000(f)Purchased computer using bank loan$2,750Balance of bank loan usedto purchase furniture and fixtures?(g)Paid cash for advertisement$500(h)Total sales on Valentine's Day$3,000Sales in cash$2,675Balance of total sales on credit?Cost of candy sold$1,200(i)Paid cash on accounts payable$550(j)Incurred and paid employee wages$1,500(k)Collected accounts receivable$155(l)Paid for repair on display case$130(m)Cash sales$2,400Cost of goods sold$1,210Data available after 3 years in business201320122011Total assets88,00049,50038,500Total liabilities$49,500$22,000$16,500Total stockholders' equity$38,500$27,500$22,000Total sales$93,500$82,500$55,000Net income$22,000$11,000$4,400

P03-05Student Name:Class:Problem 03-05BRI'S SWEETSStatement of Cash FlowsFor the Month Ended February 28, 2011Operating ActivitiesCash received from customersCash paid to employeesCash paid to suppliersTotal cash used in operating activitiesInvesting ActivitiesPurchased equipmentTotal cash used in investing activitiesFinancing ActivitiesIssued stockBorrowed from bankTotal cash from financing activitiesIncrease in cashBeginning cash balanceEnding cash balance0

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Given 03-05Given Data P03-05:BRI'S SWEETSTransactions during February, 2011:(a)Shareholder's contributions received; stock issued27,600(b)Monthly rent on store (paid 3 months)$1,880(c)Purchased candy on account, due in 60 days$5,500(d)Purchased supplies for cash$1,430(e)Negotiated two-year bank loan$11,000(f)Purchased computer using bank loan$2,750Balance of bank loan usedto purchase furniture and fixtures?(g)Paid cash for advertisement$500(h)Total sales on Valentine's Day$3,000Sales in cash$2,675Balance of total sales on credit?Cost of candy sold$1,200(i)Paid cash on accounts payable$550(j)Incurred and paid employee wages$1,500(k)Collected accounts receivable$155(l)Paid for repair on display case$130(m)Cash sales$2,400Cost of goods sold$1,210Data available after 3 years in business201320122011Total assets88,00049,50038,500Total liabilities$49,500$22,000$16,500Total stockholders' equity$38,500$27,500$22,000Total sales$93,500$82,500$55,000Net income$22,000$11,000$4,400

P03-06Student Name:Class:Problem 03-06Requirement 3:FedExIncome Statement (unadjusted)for the Year Ended June 30, 2010(in millions)Revenues:Delivery service revenueExpenses:Rental expenseWage expenseFuel expenseRepair expenseTotal expensesNet Income0FedExStatement of Stockholders' Equity (unadjusted)for the Year Ended May 31, 2012(in millions)TotalContributeRetainedStockholders'CapitalEarningsEquityBeginning, May 31, 2011Additional contributionsNet incomeDividendsEnding, May 31, 2012000FedExBalance Sheet (unadjusted)At May 31, 2012(in millions)AssetsCurrent assets:CashReceivablesPrepaid expensesSpare parts, supplies, and fuelOther current assetsTotal current assets:Property and equipment (net)Other noncurrent assetsTotal assets0Liabilities and Stockholders' EquityCurrent liabilities:Accounts payableAccrued expenses payableOther current liabilitiesTotal current liabilitiesLong-term notes payableOther noncurrent liabilitiesTotal liabilitiesStockholders' EquityContributed capitalRetained earningsTotal stockholders' equityTotal liabilities and shareholders' equity0FedExStatement of Cash Flowsfor the Year Ended May 31, 2012(in millions)Cash Flows from Operating ActivitiesCash received from customersCash paid to employeesCash paid to suppliersTotal cash provided by operating activities0Cash Flows from Investing ActivitiesNoneCash Flows from Financing ActivitiesProceeds from Repayment of long-term debtProceeds from share issuanceTotal cash used in financing activities0Increase in cashBeginning cash balanceEnding cash balance0Requirement 4:FedExTotal Asset Turnover0Evaluation of ratio:

Enter appropriate data in yellow cells. Your answer for "Net Income" will be verified.Enter appropriate data in yellow cells. Your answer for "Balance, June 30, 2004" will be verified.Enter appropriate data in yellow cells. Your answers will be verified.Enter appropriate data in yellow cells. Your answers will be verified.Enter appropriate data in yellow cells. Your answer will be verified.

Given P03-06Given Data P03-06:FedExAccount Balancesfrom May 31, 2011 Annual Report(in millions of dollars)Property and equipment (net)8,362Retained earnings$5,827Accounts payable$835Prepaid expenses$82Accrued expenses payable$1,675Long-term notes payable$667Other noncurrent assets$1,850Contributed capital$492Receivables$1,162Other current assets$1,196Cash$360Spare parts, supplies, and fuel$294Other noncurrent liabilities$3,513Other current liabilities$297July 1, 2009 to June 30, 2010 transactions(in millions of dollars)a. Provided services for accounts receivable4,567Provided services for cash$17,600b. Purchased new equipment; signed note$1,345c. Paid cash to rent equipment and aircraft$4,598Portion of rent allocated to this year$3,067d. Maintenance and repair costs$1,348e. Collected on accounts receivable$4,824f . Repaid on long-term note$18g. Issued additional stock$16h. Paid employees$10,031i. Paid for fuel used$5,348j. Paid on accounts payable$784k. Ordered spare parts and supplies$72

P03-07Student Name:Class:Problem 03-07Requirement 1:CEDAR FAIR, L.P.General JournalDateAccountDebitCredit(a)CashAdmissions revenue0(b)Operating expensesCash0Accounts payable0(c)Notes payableCash0(d)CashFood, merchandise & games revenue0Cost of goods soldFood and merchandise inventory0(e)Property and equipmentCash0(f)CashAccounts receivableAccommodations revenue0(g)Interest expenseCash0(h)Food and merchandise inventoryCash0Accounts payable0(i)Selling, general and admin. expensesCash0Accounts payable0(j)Accounts payableCash0Requirement 2:CEDAR FAIR, L.P.Cash Flow AnalysisOperating,Investing,DirectionFinancingand AmountTransactionEffectof the Effect(a)00(b)00(c)00(d)00(e)00(f)00(g)00(h)00(i)00(j)00

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Given P03-07Given Data P03-07:CEDAR FAIR, L.P.Transactions 2011:(a)Admission fees received$566,266(b)Operating expenses for the year450,967Amount of operating expenses paid in cash412,200(c)Principal paid on notes payable58,962(d)Cash received for food, merchandise and games335,917Cost of products sold for cash90,626(e)Cash paid for purchase and building of buildings,rides and equipment83,841(f)Accommodations revenue earned74,049Amount of accommodations revenue received in cash72,910(g)Interest paid on long-term debt125,838(h)Cost of food and merchandise inventory purchased146,100Amount of food and merchandise inventory purchases paid in cash118,000(i)Cost of selling, general and administrative expenses131,882Amount of cost of selling, general and administrative expenses paid in cash125,500(j)Cash paid on accounts payable9,600

CP3-3CP3-3 Comparing Companies within an IndustryRequired:1.By what title does each company call its income statement? Explain what "Consolidated" means.2.Which company had higher net income for the fiscal year?3.Compute the total asset turnover ratio for both companies for the year. Which company is utilizing assets more effectively to generate sales? State why this is so and support your position?4.Compare the total asset turnover ratio for both companies to the industry average. On average, are these two companies utilizing assets to generate sales better or worse than their competitors?5.How much cash was provided by operating activities for the year by each company? What was the percentage change in operating cash flows (1) from fiscal year ended 2007 to 2008 and (2) from fiscal year ended 2007 to 2008?(Hint: Percentage change = [Current Year Amount - Prior Year Amount] / Prior Year Amount.)This workbook is organized as follows:Sheet NameContentsCP3-3 (this worksheet)CP3-3 Problem Requirements and Workbook LayoutIndustry Ratio ReportIndustry Ratio ReportAEO Balance SheetsAmerican Eagle Outfitters, Inc. Consolidated Balance SheetsAEO Income StatementsAmerican Eagle Outfitters, Inc. Consolidated Statements of OperationsAEO Stmts of Stockholders' EqAmerican Eagle Outfitters, Inc. Consolidated Statements of Stockholders' EquityAEO Statements of Cash FlowAmerican Eagle Outfitters, Inc. Consolidated Statements of Cash FlowsUrban Balance SheetsUrban Outfitters, Inc. Consolidated Balance SheetsUrban Income StatementsUrban Outfitters, Inc. Consolidated Statements of IncomeUrban Stmts of Stockholders' EqUrban Outfitters, Inc. Consolidated Statements of Stockholders' EquityUrban Stmts of Cash FlowUrban Outfitters, Inc. Consolidated Statements of Cash Flows

Industry Ratio ReportUrban Balance SheetsUrban Income StatementsUrban Stmts of Stockholders' EqUrban Stmts of Cash FlowAEO Balance SheetsAEO Income StatementsAEO Stmts of Stockholders' EqAEO Statements of Cash Flow

Industry Ratio ReportINDUSTRY RATIO REPORTCP3-3Retail Family Clothing StoresHomeLiquidityCOMPANIES USED IN INDUSTRY ANALYSISCurrent Ratio2.55Company NameTicker SymbolQuick Ratio1.38Abercrombie & FitchANFAeropostale IncAROActivityAmerican Eagle OutfittersAEOInventory Turnover5.92Ann Taylor StoresANNDays to Sell Inventory70.897daysbebe stores IncBEBEReceivables Turnover54.24Chico's FAS IncCHSAverage Collection Period15.07daysCollective Brands IncPSSFixed Asset Turnover5.76Dress Barn Inc.DBRNTotal Asset Turnover1.90Foot Locker, IncFLAccounts Payable Turnover6.43Gap IncGPSGuess? IncGESProfitabilityJ. Crew Group IncJCGGross Profit Margin38.99%Limited Brands IncLTDOperating Profit Margin6.24%Nordstrom, Inc.JWNNet Profit Margin3.77%Pacific Sunwear of California IncPSUNReturn on Equity13.11%Ross Stores IncROSTReturn on Assets7.17%The Buckle IncBKEQuality of Income0.07The Men's Warehouse IncMW0.72Urban Outfitters IncURBNLeverageWet Seal Inc.WTSLATimes Interest Earned16.33Interest Coverage Ratio16.39Total Debt/Total Equity1.08Total Assets/Total Equity1.92DividendsDividend Payout19.61%Dividend Yield2.22%OtherAdvertising-to-Sales2.39%Sales Growth2.39%Capital Acquisitions Ratio1.93Price/Earnings6.81

CP3-3

AEO Balance SheetsAMERICAN EAGLE OUTFITTERS, INC.CP3-3CONSOLIDATED BALANCE SHEETSHomeJanuary 31,February 2,(in thousands, except per share amounts)20092008ASSETSCurrent assets:Cash and cash equivalents473,342116,061Short-term investments$10,511$503,878Merchandise inventory$294,928$286,485Accounts and note receivable$41,471$31,920Prepaid expenses and other$59,660$35,486Deferred income taxes$45,447$47,004Total current assets$925,359$1,020,834Property and equipment, at cost, net of accumulated depreciation and amortization$740,240$625,568Goodwill$10,706$11,479Long-term investments$251,007$165,810Non-current deferred income taxes$15,001$24,238Other assets, net$21,363$19,751Total assets1,963,6761,867,680LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable152,068157,928Notes payable75,0000.0Accrued compensation and payroll taxes$29,417$49,494Accrued rent$64,695$62,161Accrued income and other taxes$6,259$22,803Unredeemed stored value cards and gift certificates$42,299$54,554Current portion of deferred lease credits$13,726$12,953Other liabilities and accrued expenses$18,299$16,285Total current liabilities$401,763$376,178Non-current liabilities:Deferred lease credits$88,314$70,355Non-current accrued income taxes$39,898$44,837Other non-current liabilities$24,670$35,846Total non-current liabilities$152,882$151,038Commitments and contingencies0.00.0Stockholders equityPreferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding0.00.0Common stock, $0.01 par value; 600,000 shared authorized; 249,328 and 248,763 sharesshare issued; 205,281 and 204,480 shares outstanding , respectively$2,485$2,481Contributed capital$513,574$493,395Accumulated other comprehensive (loss) income$(14,389)$35,485Retained earnings$1,694,161$1,601,784Treasury stock, 43,248 and 43,596 shares, repectively, at cost$(786,800)$(792,681)Total stockholders' equity$1,409,031$1,340,464Total liabilities and stockholders equity1,963,6761,867,680

CP3-3

AEO Statement of OperationsAMERICAN EAGLE OUTFITTERS, INC.CP3-3CONSOLIDATED STATEMENTS OF OPERATIONSHomeFor the Years EndedJanuary 1,February 2,February 3,(In thousands, except per share amounts)200920082007Net sales2,988,8663,055,4192,794,409Cost of sales, including certain buying, occupancy andwarehousing expenses$1,814,765$1,632,281$1,453,980Gross profit$1,174,101$1,423,138$1,340,429Selling, general and administrative expenses$740,742$715,180$665,606Depreciation and amortization expense$131,219$109,203$88,033Operating income$302,140$598,755$586,790Other income, net$17,790$37,626$42,277Other-than-temporary impairment charge$22,8890.00.0Income before income taxes$297,041$636,381$629,067Provision for income taxes$117,980$236,362$241,708Net income179,061400,019387,359Basic income per common share$0.87$1.85$1.74Diluted income per common share$0.86$1.82$1.70Weighted average common shares outstanding - basic205,169216,119222,662Weighted average common shares outstanding - diluted207,582220,280228,384

CP3-3

AEO Statement of IncomeAMERICAN EAGLE OUTFITTERS, INC.CP3-3CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEHomeFor the Years EndedJanuary 1,February 2,February 3,(In thousands)200920082007Net income179,061400,019387,359Other comprehensive (loss) income:Temporary impairment related to ivestment securities, net of tax$(22,795)0.00.0Reclassification adjustment for OTTI charges realized in net incomerelated to ARS$751Reclassification adjustment for losses realized in net income due tothe sale of available-for-sale securities, net of tax$197$242$356Unrealized (loss) gain on investments, net of tax$(378)$947$(191)Reclassification adjustment for gain realized in net income realted to thetransfer of investment securities from available-for-sale classificationto trading classification, net of tax0.00.0$(177)Foreign currency translation adjustment$(27,649)$12,582$(1,180)Reclassification adjustment for foreign currenty loss reasinzed in netincome realted to the disposition of National Logistics Services0.00.0$878Other comprehensive (loss) income$(49,874)$13,771$(314)Comprehensive income129,187413,790387,045

CP3-3

AEO Stmts of Stockholders' EqAMERICAN EAGLE OUTFITTERS, INC.CP3-3CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYHomeAccumulatedSharesDeferredOtherOutstandingCommonContributedRetainedTreasuryCompensationComprehensiveStockholders(in thousands, except per share amounts)(1)StockCapitalEarningsStock (2)ExpenseIncome (loss)EquityBalance at January 31, 2006$221,8972,416369,807978,855(216,513)(1,041)22,0281,155,552Stock awards$4,556$45$83,6150.00.0$1,0410.0$84,701Repurchase of common stock as part of publiclyannounced programs$(5,250)0.00.0$(146,485)0.00.0$(146,485)Repurchase of common stock from employees$(443)0.00.00.0$(7,635)0.00.0$(7,635)Cash paid for fractional shares in three-for-two0.00.0stock split$(4)0.0$(113)0.00.00.00.0$(113)Reissuance of treasury stock$5280.0$109$(2,348)$8,0070.00.0$5,768Net income0.00.00.0$387,3590.00.00.0$387,359Other comprehensive loss, net of tax0.00.00.00.00.0$(314)$(314)Cash dividends ($0.28 per share)0.00.00.0$(61,521)0.00.00.0$(61,521)Balance at February 3, 2007$221,284$2,461$453,418$1,302,345$(362,626)0.0$21,714$1,417,312Adoption of FIN 480.00.00.0$(13,304)0.0$(13,304)Balance at February 4, 2007$221,284$2,461$453,418$1,289,041$(362,626)0.0$21,714$1,404,008Stock awards$1,092$20$39,9770.00.00.00.0$39,997Repurchase of common stock as partof publicly announced programs$(18,750)0.00.00.0$(438,291)0.00.0$(438,291)Repurchase of common stock from employees$(415)0.00.00.0$(12,310)0.00.0$(12,310)Reissuance of treasury stock$1,2690.00.0$(6,480)$20,5460.00.0$14,066Net income0.00.00.0$400,0190.00.0$400,019Other comprehensive income, net of tax0.00.00.00.00.00.0$13,771$13,771Cash dividends ($0.98 per share)0.00.00.0$(80,796)0.00.00.0$(80,796)Balance at February 2, 2008$204,480$2,481$493,395$1,601,784$(792,681)0.0$35,485$1,340,464Stock awards$453$4$20,179$4200.00.00.0$20,603Repurchase of common stock from employees$(164)0.00.00.0$(3,432)0.00.0$(3,432)Reissuance of treasury stock$5120.00.0$(4,710)$9,3130.00.0$4,603Net income0.00.00.0$179,0610.00.00.0$179,061Other comprehensive loss, net of tax0.00.00.00.00.00.0$(49,874)$(49,874)Cash dividends ($0.40 per share)0.00.00.0$(82,394)0.00.00.0$(82,394)Balance at January 31, 2009205,2812,485513,5741,694,161(786,800)0.0(14,389)1,409,031Note 1600,000 authorized, 249,328 issued and 205,281 outstanding (excluding 799 shares of non-vested restricted stock), $0.01 par value common stock at January 31, 2009; 600,000 authorized, 248,763 issued and 204,480 outstanding (excluding 687 shares of non-vesNote243,248 shares 43,596 shares and 25,699 shares at January 31, 2009, February 2, 2008, and February 3, 2007, respectively. During Fiscal 2008 and Fiscal 2007, 512 shares and 1,269 shares, respectively, were reissued from treasury stock for the issuance of

CP3-3

AEO Statments of Cash FlowAMERICAN EAGLE OUTFITTERS, INC.CP3-3CONSOLIDATED STATEMENTS OF CASH FLOWSHomeFor the Years EndedJanuary 31,February 2,February 3,(In thousands)200920082007Operating activities:Net income179,061400,019387,359Adjustments to reconcile income to net cash provided by operating activities:Depreciation and amortization$133,141$110,753$89,698Stock-based compensation$20,296$33,670$36,556Provision for deferred income taxes$24,469$(8,147)$(27,572)Tax benefit from share-based payments$1,121$7,260$25,465Excess tax benefit from share-based payments$(693)$(6,156)$(19,541)Foreign currency transaction (gain) loss$(1,141)$1,221$687Loss on impairment of assets$6,713$5920.0Other-than-temporary impairment charge$22,8890.00.0Proceeds from sale of trading securities0.00.0$183,968Changes in assets and liabilities:Merchandise inventory$(13,735)$(19,074)$(53,527)Accounts and note receivable$(10,094)$(5,660)$7,448Prepaid expenses and other$(24,781)$(1,334)$(4,204)Other assets, net$390$(3,242)$(5,357)Accounts payable$(3,053)$(15,559)$32,345Unredeemed gift cards and gift certificates$(11,392)$(699)$11,623Deferred lease credits$18,887$4,640$7,791Accrued income and other taxes$(20,697)$(31,416)$43,482Accrued liabilities$(19,188)$(2,598)$33,047Total adjustments$123,132$64,251$361,909Net cash provided by operating activities$302,193$464,270$749,268Investing activities:Capital expenditures$(265,335)$(250,407)$(225,939)Proceeds from sale of assets0.00.0$12,345Purchase of available-for-sale securities$(48,655)$(1,772,653)$(1,353,339)Sale of available-for-sale securities$393,559$2,126,891$915,952Other investing activities$(1,180)$(1,170)$(140)Net cash provided by (used for) investing activities$78,389$102,661$(651,121)Financing activities:Payments on note payable and capital leases$(2,177)$(1,912)$(3,020)Proceeds from issuance of note payable$75,0000.0$2,025Repurchase of common stock as part of publicly announced programs0.0$(438,291)$(146,485)Repurchase of common stock from employees$(3,432)$(12,310)$(7,635)Cash paid for fractional shares in connection with three-for-two stock split0.00.0$(113)Net proceeds from stock options exercised$3,799$13,183$28,447Excess tax benefit from share-based payments$693$6,156$19,541Cash dividends paid$(82,394)$(80,796)$(61,521)Net cash used for financing activities$(8,511)$(513,970)$(168,761)Effect of exchange rates on cash$(14,790)$3,363$(178)Net (increase) decrease in cash and cash equivalents$357,281$56,324$(70,792)Cash and cash equivalents - beginning of period$116,061$59,737$130,529Cash and cash equivalents - end of period473,342116,06159,737

CP3-3

Urban Balance SheetsURBAN OUTFITTERS, INC.CP3-3Consolidated Balance SheetsHome(in thousands, except share and per share data)January 31,20092008ASSETSCurrent Assets:Cash and cash equivalents316,03549,912Marketable securities$49,948$141,883Accounts receivable, net of allowance for doubtful accounts of $1,229and $966, respectively$36,390$14,324Inventories$169,698$140,377Prepaid expenses and other current assets$46,412$33,993Deferred taxes$5,919$4,694Total current assets$624,402$385,183Property and equipment, net$505,407$299,291Marketable securities$155,226$64,748Deferred income taxes and other assets$43,974$19,983Total Assets1,329,009769,205LIABILITIES AND SHAREHOLDERS' EQUITYCurrent Liabilities:Accounts payable$62,955$41,291Accrued compensation$11,975$12,673Accrued expenses and other current liabilities$66,220$79,544Total current liabilities$141,150$133,508Deferred rent and other liabilities$134,084$74,817Total Liabilities$275,234$208,325Commitments and contingencies (see Note11)Shareholders' equity:Preferred shares; $.0001 par value, 10,000,000 shares authorized,none issued0.00.0Common shares; $.0001 par value, 200,000,000 shares authorized,167,712,088 and 166,104,615 issued and outstanding respectively$17$16Additional paid-in capital$170,166$134,146Retained earnings$901,339$426,190Accumulated other comprehensive (loss) income$(17,747)$528Total Shareholders Equity$1,053,775$560,880Total Liabilities and Shareholders' Equity1,329,009769,205

CP3-3

Urban Income StatementsURBAN OUTFITTERS, INC.CP3-3Consolidated Statements of IncomeHome(in thousands, except share and per share data)Fiscal Year Ended January 31,200920082007Net sales1,834,6181,507,7241,224,717Cost of sales, including certain buying, distributionand occupancy costs$1,121,140$930,952$772,796Gross profit$713,478$576,772$451,921Selling, general and administrative expenses$414,043$351,827$287,932Income from operations$299,435$224,945$163,989Interest income$11,504$9,390$6,531Other income$694$575$353Other expenses$(2,143)$(515)$(715)Income before income tax expense$309,490$234,395$170,158Income tax expense$110,126$74,164$53,952Net income199,364160,231116,206Net income per common share:Basic$1.20$0.97$0.71Diluted$1.17$0.94$0.69Weighted average common shares outstanding:Basic$166,793,062$165,305,207$164,679,786Diluted$170,860,605$169,640,585$168,652,005

CP3-3

Urban Stmts Stockholders' EqURBAN OUTFITTERS, INC.CP3-3Consolidated Statements of Shareholders' EquityHome(in thousands, except share data)AccumulatedCommon SharesAdditionalOtherComprehensiveNumber ofParPaid-inUnearnedRetainedComprehensiveIncomeSharesValueCapitalCompensationEarningsIncome (loss)TotalBalances as of February 1, 2006$164,831,47716138,050(3,905)426,190528560,880Net Income116,2060.00.00.00.0$116,2060.0$116,206Foreign currency translation$3,6140.00.00.00.00.0$3,614$3,614Unrealized losses on marketable securities,net of tax$1420.00.00.00.00.0$142$142Comprehensive income119,962Share-based compensation0.00.0$3,4970.00.0$3,497Unearned compensation reclass0.00.0$(3,905)$3,9050.00.00.0Exercise of stock options$1,375,986$1$6,3500.00.00.0$6,351Tax effect of share exercises0.0$5,394$5,394Share Repurchase$(1,220,000)0.0$(20,801)0.00.00.0$(20,801)Balances as of January 31, 2007$164,987,463$17$128,5860.0$542,396$4,284$675,283Net income$160,2310.00.00.00.0$160,2310.0$160,231Foreign currency translation$7030.00.00.00.00.0$703$703FIN48 adjustment0.0$(652)$(652)Unrealized gains on marketable securities,net of tax$2,2480.00.00.00.00.0$2,248$2,248Comprehensive income163,182Share-based compensation0.00.0$3,2770.00.00.0$3,277Exercise of stock options$1,117,1520.0$5,0000.00.00.0$5,000Tax effect of share exercises0.00.0$7,3410.00.00.0$7,341Balances as of January 31, 2008$166,104,615$17$144,2040.0$701,975$7,235$853,431Net income$199,3640.00.00.00.0$199,3640.0$199,364Foreign currency translation$(19,866)0.00.00.00.00.0$(19,866)$(19,866)Unrealized losses on marketable securities,net of tax$(5,116)0.00.00.00.00.0$(5,116)$(5,116)Comprehensive income174,382Share-based compensation0.00.0$3,6370.00.00.0$3,637Exercise of stock options$1,607,4730.0$8,8910.00.00.0$8,891Tax effect of share exercises0.00.0$13,4340.00.00.0$13,434Balances as of January 31, 2009$167,712,08817170,1660.0901,339(17,747)1,053,775

CP3-3

Urban Stmts of Cash FlowURBAN OUTFITTERS, INC.CP1-3Consolidated Statements of Cash FlowsHome(in thousands)Fiscal Year Ended January 31,200920082007Cash flows from operating activities:Net income199,364160,231116,206Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization$81,949$70,017$55,713Provision for deferred income taxes$(9,351)$(2,782)$(4,959)Tax benefit of stock option exercises$(13,434)$(7,341)$(5,394)Share-based compensation expense$3,637$3,277$3,497Loss on disposition of property and equipment, net$61$317$1,393Changes in assets and liabilities:Receivables$(10,726)$(5,462)$(6,371)Inventories$(272)$(17,430)$(13,416)Prepaid expenses and other assets$9,210$(22,441)$6,848Accounts payable, accrued expenses and other liabilities$(8,868)$75,967$33,600Net cash provided by operating activities$251,570$254,353$187,117Cash flows from investing activities:Cash paid for property and equipment$(112,553)$(115,370)$(212,029)Cash paid for marketable securities$(809,039)$(293,633)$(182,653)Sales and maturities of marketable securities$864,685$220,101$193,274Net cash used in investing activities$(56,907)$(188,902)$(201,408)Cash flows from financing activities:Exercise of stock options$8,891$5,000$6,351Excess tax benefit of stock options exercises$13,434$7,341$5,394Share repurchases0.00.0$(20,801)Net cash provided by (used in) financing activities$22,325$12,341$(9,056)Effect of exchange rate changes on cash and cash equivalents$(6,224)$212$702Increase (decrease) in cash and cash equivalents$210,764$78,004$(22,645)Cash and cash equivalents at beginning of period$105,271$27,267$49,912Cash and cash equivalents at end of period316,035105,27127,267Supplemental cash flow information:Cash paid during the year for:Income taxes115,04070,76552,535Non-cash investing activities - Accrued capital expenditures6,5616,64514,618

CP1-3