At the bottom of each statement, the company warns readers that “The accompanying notes are an integral part of these financial statements.” The following questions illustrate the types of information that you can find in the financial statements and accompanying notes.
Required:
1. What subtotals does Urban Outfitters report on its income statement?
2. The company spent $112,553,000 on capital expenditures (property, plant, and equipment) and $809,039,000 purchasing investments during the most recent year. Were operating activities or financing activities the major source of cash for these expenditures?
3. What was the company’s largest asset (net) at the end of the most recent year?
4. How does the company account for costs associated with developing its websites?
5. Over what useful lives are buildings depreciated?
6. What portion of gross “Property and Equipment” is composed of “Buildings”?