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What is the net income?

Use the attached financial data to calculate the ratios for 2021. Round to the nearest decimal.

Financial Data for American Eagle Outfitters (AEO)

[tex]\[
\begin{tabular}{l|l|l}
& 2021 & 2020 \\
Revenues & \$ 5,011 & \$ 3,759 \\
Cost of Sales & 3,019 & 2,611 \\
Total Operating Expenses & 1,222 & 977.3 \\
Interest Expense & 34.6 & 24.6 \\
Income Tax Expense & 139.3 & 83.0 \\
Net Income & 434.8 & 8.50 \\
Cash + Equivalents & 286.7 & 8.56 \\
Accounts Receivable & 553.5 & 1,405.4 \\
Inventories & 122 & 12.1 \\
Prepaid Expenses & 1,397 & 1,523 \\
Total Current Assets & 3,787 & 3,435 \\
Total Assets & 23.8 & - \\
Accounts Payable & 842.9 & 255.9 \\
Total Current Liabilities & 341.0 & 858.5 \\
Long-term Debt & - & 325.3 \\
\end{tabular}
\][/tex]

Select one:
A. \$5511.2 million



Answer :

GinnyAnswer
To calculate the net income for the year 2021 based on the provided financial data, follow these steps:

### Step-by-Step Calculation:

1. Identify the Financial Data for 2021:
- Revenues: \[tex]$5011 million - Cost of Sales: \$[/tex]3019 million
- Total Operating Expenses: \[tex]$1222 million - Interest Expense: \$[/tex]34.6 million
- Income Tax Expense: \[tex]$139.3 million 2. Calculate Earnings Before Tax (EBT): \[ \text{EBT} = \text{Revenues} - (\text{Cost of Sales} + \text{Total Operating Expenses} + \text{Interest Expense}) \] Substituting the values, \[ \text{EBT} = 5011 - (3019 + 1222 + 34.6) \] \[ \text{EBT} = 5011 - 4275.6 \] \[ \text{EBT} = 735.4 \text{ million} \] 3. Calculate Net Income: \[ \text{Net Income} = \text{EBT} - \text{Income Tax Expense} \] Substituting the values, \[ \text{Net Income} = 735.4 - 139.3 \] \[ \text{Net Income} = 596.1 \text{ million} \] Thus, the net income for 2021 is \$[/tex]596.1 million.

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