1.Add ratio analysis to your Excel spreadsheet for each of the pages: •The Consolidated Balance Sheets.•The Consolidated Statements of Income.•The…

1.Add ratio analysis to your Excel spreadsheet for each of the pages: •The Consolidated Balance Sheets. •The Consolidated Statements of Income. •The Consolidated Statements of Cash Flows. 2.Then prepare a three-year forecast (as demonstrated in the case study) for: •A pro forma Consolidated Balance Sheets. •A pro forma Consolidated Statements of Income. •A pro forma Consolidated Statements of Cash Flows. 3.Use these statements to arrive at your calculation of value.

Appendix C, C-3

)

2009 2008

,035

49,948 49,948 49,948

1,925

46,412 46,412 46,412

5,919 5,919 5,919

37.94%

505,407 505,407 505,407

Marketable securities

155,226 155,226 155,226

46,974 46,974 46,974

11,975 11,975 11,975

66,220 66,220 66,220

134,084 134,084 134,084

4.9%

0 0 0 0 0

respectively 17 17

0.00% 0.00% 17 17 17

170,166 170,166 170,166

(17,747) (17,747) (17,747)

$1,142,791

100.00%

2009 2008

/Average Stockholder’s Equity

Revenue

0.63 to 1

to 1

6.2

6.6 Times

16 Times

																												URBAN OUTFITTERS, INC.
Consolidated Balance Sheets
	(in thousands, except share and per share data)			Percentage			2 Year Average
January,31,		(	Inc/Dec		Common Size Percentage	Turnover			Forcast
		2										0								2008				2009	2010	2011	2012
ASSETS
Current assets:
Cash and cash equivalents	$3 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper		16	$		105,271		-200.2%	23.73%	9.21%	$567,133	$878,303	$1,256,878
	Marketable securities				49,948	80,127	37.7%	3.75%	7.01%
Accounts receivable, net allowance for doubtful accounts of $1,229
and $9666,	respectively	36,390	26,365	-38.0%	2.73%	2.31%			6.2	$38,646								$0	$41,042	$43,587
Inventories	169,698						17	1.3%	12.74%	15.04%			6.6	$180,898	$192,837	$205,565
Prepaid expenses and other current assets				46,412	46,238		-0.4%	3.48%	4.05%
Deferred taxes				5,919	3,684	-60.7%	0.44%	0.32%
Total current assets	624,402	433,				61	-44.0%	46.88%		37.94%	$888,956	$1,214,461	$1,608,308
Property and equipment, net				505,407	488,889	-3.4%	42.78%
			155,226	188,252	17.5%	11.65%	16.47%
Deferred income taxes and other assets				46,974	32,040	-46.6%	3.53%	2.80%
Total Assets	$1,332,009		$1,142,791	-16.6%		10											0.00			100.00%	$1,596,563	$1,922,068	$2,315,915
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$62,955	$74,020	1	4.9%	4.73%	6.48%	1	6.00%	$73,028	$84,712	$98,266
Accrued compensation				11,975	10,128	-18.2%	0.90%	0.89%
Accrued expenses and other current liabilities				66,220	83,230		20.4%	4.97%	7.28%
Total current liabilities	141,150	167,378	15.7%	10.60%	14.65%	$151,223	$162,907	$176,461
Deferred rent and other current liabilities				134,084	121,982	-9.9%	10.07%	10.67%
Total Liabilities	275,234	289,360	20.66%	25.32%	$285,307	$296,991	$310,545
Commitments and contingencies (see Note 11)
Shareholders’ equity
Preferred shares; $.0001 par value, 10,000,000 shares authorized, none
issued
Common shares; $.0001 par value, 200,000,000 shares authorized,
167,712,088 and 166,104,615 issued and outstanding,
0.0%
Additional paid-in capital				170,166	144,204	-18.0%	12.78%	12.62%
Retained earnings	901,339	701,975	-28.4%	67.67%	61.43%	$1,152,437.18	$1,463,606.55	$1,842,182.00
Accumulated other comprehensive (loss) income				(17,747)	7,235	345.3%	-1.33%		0.63
Total Shareholders’ Equity	1,053,775	853,431	-23.5%	79.11%	74.68%	1,304,873	1,616,043	1,994,618
Total Liabilities and Shareholders’ Equity	$1,329,009	-1	6.3%	99.77%	$1,590,180	$1,913,034	$2,305,163
		The accompanying notes are an integral part of these consolidated financial statements
Ratio Analisys
				2007
Return on Equity=	Net Income	20.9%
	Return on Assets=Net Income+Interest Expense (Net of Tax)/Average Total Asset	16.1%
	Financial Leverage Percentage=Return on Equity-Return on Assets		4.8
	Earning per share=Net Income/Average number of shares of common stock outstanding	$	1.19
	Quality of Income=Cash Flows from Operating Activities/Net Income		1.26		1.59		1.61
Profit Margin Ratio=Net Income/	Net Sales			10.87%	1	0.63%			9.49%
	Asset Turnover=Net Sales Revenue/Average Total Assets		1.48
	Cash Ratio=Cash+Cash Equivalents/Current Liabilities		2.24												to 1
	Current Ratio=Total Current Assets/Total Current liabilities		4.42	2.59
	Quick Ratio=Quick Assets/Current Liabilities		2.85	1.27
	AR Turnover Ratio=		Net Credit Sales/Average Net Receivables		58.5						Times
	Average Age of Receivables=Days in a Year/Ar Turnover Ratio		Average days to collect
	Inventory Turnover Ratio=Cost of Goods sold/Average inventory
	Average Days’ Supply in Inventory=Days in a Year/Inventory Turnover Ratio		63.1		Average days supply in Inventory
	AP Turnover Ratio=Cost of Goods Sold/Average Accounts Payable
	Average Age of Payables=Days in a Year/AP Turnover Ratio		22.8		Average days to pay suppliers
	Debt-to-equity Ratio=Total Liabilities/Stockholders Equity		0.26		0.34
	P/E ratio=Current Market Price per share/Earnings per share		26.14

Appendix C, C-4

URBAN OUTFITTERS, INC.

(in thousands, except share and per share data)
Percentage 2 Year Average

(Inc/Dec) Common Size Percentage

Forcast

2009 2008 2007 2009 2008 2009 2008 2007 2010 2011 2012
Net Sales

100.00% 100.00% 100.00%

20.4%

0.63%

$11,504 $11,504

0.04%

$694 $694

($2,143) ($2,143)

6.00% 4.92%

Net Income

10.87%

9.49%

per common share:

-23.7%

0.00% 0.00% 0.00% 1.20 1.20 1.20

0.00% 0.00% 0.00% 1.17 1.17 1.17

Basic

-0.4%

$166,793,062 $166,793,062

Diluted

$170,860,605 $170,860,605

The accompanying notes are an integral part of these consolidated financial statements
2009 2008 2007

Return on Assets=Net Income+Interest Expense (Net of Tax)/Average Total Asset

Financial Leverage Percentage=Return on Equity-Return on Assets 4.8

Earning per share=Net Income/Average number of shares of common stock outstanding 1.19

Quality of Income=Cash Flows from Operating Activities/Net Income 1.26 1.59 1.61

10.87% 10.63% 9.49%
Asset Turnover=Net Sales Revenue/Average Total Assets 1.48

Cash Ratio=Cash+Cash Equivalents/Current Liabilities 2.24 to 1

to 1

Current Ratio=Total Current Assets/Total Current liabilities 4.42 to 1

to 1

Quick Ratio=Quick Assets/Current Liabilities 2.85 to 1

to 1

AR Turnover Ratio= Net Credit Sales/Average Net Receivables 58.5 Times

Average Age of Receivables=Days in a Year/Ar Turnover Ratio 6.2 Average days to collect

Inventory Turnover Ratio=Cost of Goods sold/Average inventory 6.6 Times

Average Days’ Supply in Inventory=Days in a Year/Inventory Turnover Ratio 63.1 Average days supply in Inventory
AP Turnover Ratio=Cost of Goods Sold/Average Accounts Payable 16 Times
Average Age of Payables=Days in a Year/AP Turnover Ratio 22.8 Average days to pay suppliers
Debt-to-equity Ratio=Total Liabilities/Stockholders Equity 0.26 0.34

P/E ratio=Current Market Price per share/Earnings per share 26.14

Consolidated Statements of Income
	Fiscal Year Ended January 31,	Rate of Growth
$1,834,618	$1,507,724	$1,224,717	-21.7%	-23.1%	2	2.4%	$2,245,474	$2,748,339	$3,363,819
Cost of sales, including buying, distribution
and occupancy costs	1,121,140	930,952	772,796	-20.4%	-20.5%	61.11%	61.75%	63.10%	$1,350,384	$1,626,503	$1,959,081
Gross profit	713,478	576,772	451,921		-23.7%	-27.6%	38.89%	38.25%	36.90%	$895,090	$1,121,836	$1,404,738
Selling, general and administrative expenses	414,043	351,827	287,932	-17.7%	-22.2%	22.57%	23.33%	23.51%	19.9%	$496,592	$595,600	$714,346
Income from operations	299,435	224,945	163,989	-33.1%	-37.2%	16.32%	1	4.92%	13.39%	$398,497	$526,237	$690,392
Interest income	11,504	9,390	6,531	-22.5%	-43.8%	0.62%	0.53%			$11,504
Other income	694	575	353	-20.7%	-62.9%		0.04%	0.03%			$694
Other expenses	(2,143)	(515)	(715)	-316.1%	28.0%	-0.12%	-0.03%	-0.06%			($2,143)
Income before income taxes	309,490	234,395	170,158	-32.0%	-37.8%	16.87%	15.55%	13.89%	$408,552	$536,292	$700,447
Income tax expense	110,126	74,164	53,952	-48.5%	-37.5%	4.41%	43.0%	$157,454	$225,122	$321,872
	$199,364		$160,231		$116,206		-24.4%		-37.9%		10.63%		$251,098	$311,169	$378,575
	Net income
	Basic	$			1.20	$0.97	$0.71	-36.6%
	Diluted	$			1.17	$0.94	$0.69	-24.5%	-3	6.2%
Weighted average common shares outstanding:
166,793,062	165,305,207	164,679,786	-0.9%	9091.43%	10963.89%	13446.35%			$166,793,062
170,860,605	169,640,585	168,652,005	-0.7%	-0.6%	9313.14%	11251.43%	13770.69%			$170,860,605
Return on Equity=Net Income/Average Stockholder’s Equity	20.91%
16.11%
Profit Margin Ratio=Net Income/Net Sales Revenue
0.6289416769
2.5906033051
1.2651782194

Appendix C, C-6

URBAN OUTFITTERS, INC.

Percentage
Fiscal Year Ended January 31, Inc/Dec 2 Year Average Forcast
2009 2008 2007 2009 2008 2010 2011 2012
Net income $199,364 $160,231 $116,206 -24.4% -37.9% $251,098 $311,169 $378,575

$81,949 $81,949

(9,351) (9,351) (9,351)

)

(13,434) (13,434) (13,434)

6.3% 3,637 3,637 3,637

61 61 61

(10,726) (10,726) (10,726)

(272) (272) (272)

9,210 9,210 9,210

(8,868) (8,868) (8,868)

,029)

2.4%

(112,553) (112,553) (112,553)

(809,039) (809,039) (809,039)

864,685 864,685 864,685

6.2% (56,907) (56,907) (56,907)

8,891 8,891 8,891

13,434 7,341 5,394 -83.0% -36.1% 13,434 13,434 13,434

0 0

0 0 0

22,325 22,325 22,325

212

(6,224) (6,224) (6,224)

105,271

316,035 105,271 27,267 -200.2% -286.1% $578,533 $907,539

$115,040 $115,040 $115,040

$6,551 $6,551 $6,551

The accompanying notes are an integral part of these consolidated financial statements

2010 2011 2012

0.00 0.00 0.00

(6,551.00) (6,551.00)

Consolidated Statements of Cash Flow
(in thousands)
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization	81,949	70,017	55,713	-17.0%	-25.7%			$81,949
Provision for deferred income taxes				(9,351)	(2,782)	(4,959)	-236.1%	43.9%
Excess tax benefit of share–based compensation				(				13,434	(	7,341	(	5,394	-83.0%	-36.1%
Share-based compensation expense				3,637	3,277	3,497	-11.0%
Loss on disposition of property and equipment, net	317	1,393	80.8%	77.2%
Changes in assets and liabilities:
Receivables				(10,726)	(5,462)	(6,371)	-96.4%	14.3%
Inventories				(272)	(17,430)	(13,416)	98.4%	-29.9%
Prepaid expenses and other assets				9,210	(22,441)	6,848	141.0%	427.7%
Accounts payable, accrued expenses and other
liabilities				(8,868)	75,967	33,600	111.7%	-126.1%
Net cash provided by operating activities	251,570	254,353	187,117	1.1%	-35.9%	$303,304	$363,375	$430,781
Cash flows from investing activities:
Cash paid for property and equipment				(112,553)	(115,370)	(	212	45.6%
Cash paid for marketable securities				(809,039)	(293,633)	(182,653)	-175.5%	-60.8%
Sales and maturities of marketable securities				864,685	220,101	193,274	-292.9%	-13.9%
Net cash used in investing activities				(56,907)	(188,902)	(201,408)	69.9%
Cash flows from financing activities:
Exercise of stock options				8,891	5,000	6,351	-77.8%	21.3%
Excess tax benefit of stock option exercises
Share repurchases	(20,801)	100.0%
Net cash provided by (used in) financing activities				22,325	12,341	(9,056)	-80.9%	236.3%
Effect of exchange rate changes on cash and cash equivalents				(6,224)	702	3035.8%	69.8%
Increase (decrease) in cash and cash equivalents	210,764	78,004	(22,645)	-170.2%	444.5%	$262,498	$329,005	$396,901
Cash and cash equivalents at beginning of period		27,267	49,912		-286.1%	45.4%		316,035		$578,533		$907,539
Cash and cash equivalents at end of period	$1,304,440
Supplemental cash flow information:
Cash paid during the year for:
Income taxes				$115,040	$70,765	$52,535	-62.6%	-34.7%
Non-cash investing activities—Accrued capital
expenditures				$6,551	$6,645	$14,618	1.4%	54.5%
Cash from operations	303,304.00	363,375.00	430,781.00
add:interest expense (1-t)
less:capital expenditures			(6,551.00)
Free Cash Flow	296,753.00	356,824.00	424,230.00

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