MBA-FPX 5010
Capella University
MBA-FPX 5010
Urban Outfitters
Urban Outfitters, Inc. (URBN) is a multibillion-dollar lifestyle retailer based in
Philadelphia, Pennsylvania. It has operations in the US, Sweden, the UK, Spain, Denmark,
France, Germany, Ireland, Belgium, Canada, Italy, the Netherlands, Israel, Poland, and the
United Arab Emirates. Urban Outfitters sells women's and men's fashion clothes, footwear,
beauty and wellness goods, accessories, sportswear and gear, and housewares, as well as music,
particularly vinyl records and cassettes, to young adults. The wholesale segment of the
corporation designs and manufactures a large portion of the items under several private brands.
Richard Hayne, Judy Wicks, and Scott Belair launched the firm as the retail business Free People
in 1970 as a project for a University of Pennsylvania business class. In 1976, it was renamed
Urban Outfitters and incorporated. Within the Urban Outfitters, Inc. (URBN) portfolio of brands,
which also includes Anthropologie, Free People, Terrain, BHLDN, and the Vetri Family
restaurant group, there are several shops, (Wikipedia, n.d.).
Urban Outfitters is currently looking for ways to expand their business. A new district
manager was recently engaged by the organization. The company has decided to create a training
handbook to ensure that employees have a thorough grasp of Urban Outfitters revenue
statements, balance sheets, and the components that make it up. The training manual will show
you how to identify and explain advertising costs, as well as where they appear on the income
statement. The consolidation statement includes store opening expenses, as well as development
expenditures, which will be reviewed. Having a solid knowledge of income statements and
balance sheets will be extremely advantageous to the expanding company. The training booklet
should aid in the new manager's training so that they are effective in knowing Urban Outfitters'
accounting tools and processes.
\
, Income Statements
An income statement is a financial statement that illustrates how lucrative your company was
during a certain reporting period. It displays your revenue after subtracting your costs and losses,
(Zarzycki, 2019). Income statements are critical in any firm and are required to comprehend
revenue, expenditure, gains, and losses. These are usually completed in a set length of time.
Every perspective year, Urban Outfitters uses the fiscal year of February 1 to January 31. This is
how a company tracks its ongoing operations, which is primarily revenue minus expenditure, but
also income from a variety of different sources, allowing the company to observe profits and
losses when assets are sold. The gross profit made by a company through the sale of products
and services is referred to as revenue. Costs incurred in the usual course of business are known as
business expenditures. They can apply to both small and large businesses. The income statement
includes business costs. To arrive at a company's taxable net income, business expenditures are
reduced from revenue on the income statement. Deductions are another term for business costs.
In general, businesses have specific constraints and particular considerations when it comes to
deducting business expenses. Capital and operational expenditures are the two types of spending,
(Kagan, 2021). Gains are the proceeds earned from the sale of firm assets, whereas losses are the
funds lost by the firm.
Balance Sheets
A balance sheet is a financial statement that shows a company's assets, liabilities, equity capital,
total debt, and other financial information at a specific point in time. On one side of the balance
sheet are assets, while on the other side are liabilities. Both headings (liabilities and assets)
should equal (Assets = Liabilities + Equity) for the balance sheet to represent the genuine
picture. Urban Outfitters uses fiscal year, (Economic Times, 2021).
Advertising Expenses
Urban Outfitters spends a significant amount of money on advertising. This is usually seen in the
revenue statement, which shows dollar amounts for advertisements that ran during the fiscal year
in question. The selling of expenses portion of the revenue statement lists the costs of advertising
for Urban Outfitters. The selling of expenses portion of the revenue statement lists Urban
Outfitters advertising charges. For the fiscal years 2015, 2016, and 2017, the company spent
$103,882 on the lowest, $114,104 on the middle, and $127,159 on the highest. Both web creative
spending and advertising cost are classified as "selling, general, and administrative expenditures"
on Urban Outfitters' income statement (United States Securities and Exchange Commission,
2017).
Net sales
$ 3,545,794 $ 3,445,134 $ 3,323,077
Cost of sales
2,301,181 2,243,232 2,148,147
\
Capella University
MBA-FPX 5010
Urban Outfitters
Urban Outfitters, Inc. (URBN) is a multibillion-dollar lifestyle retailer based in
Philadelphia, Pennsylvania. It has operations in the US, Sweden, the UK, Spain, Denmark,
France, Germany, Ireland, Belgium, Canada, Italy, the Netherlands, Israel, Poland, and the
United Arab Emirates. Urban Outfitters sells women's and men's fashion clothes, footwear,
beauty and wellness goods, accessories, sportswear and gear, and housewares, as well as music,
particularly vinyl records and cassettes, to young adults. The wholesale segment of the
corporation designs and manufactures a large portion of the items under several private brands.
Richard Hayne, Judy Wicks, and Scott Belair launched the firm as the retail business Free People
in 1970 as a project for a University of Pennsylvania business class. In 1976, it was renamed
Urban Outfitters and incorporated. Within the Urban Outfitters, Inc. (URBN) portfolio of brands,
which also includes Anthropologie, Free People, Terrain, BHLDN, and the Vetri Family
restaurant group, there are several shops, (Wikipedia, n.d.).
Urban Outfitters is currently looking for ways to expand their business. A new district
manager was recently engaged by the organization. The company has decided to create a training
handbook to ensure that employees have a thorough grasp of Urban Outfitters revenue
statements, balance sheets, and the components that make it up. The training manual will show
you how to identify and explain advertising costs, as well as where they appear on the income
statement. The consolidation statement includes store opening expenses, as well as development
expenditures, which will be reviewed. Having a solid knowledge of income statements and
balance sheets will be extremely advantageous to the expanding company. The training booklet
should aid in the new manager's training so that they are effective in knowing Urban Outfitters'
accounting tools and processes.
\
, Income Statements
An income statement is a financial statement that illustrates how lucrative your company was
during a certain reporting period. It displays your revenue after subtracting your costs and losses,
(Zarzycki, 2019). Income statements are critical in any firm and are required to comprehend
revenue, expenditure, gains, and losses. These are usually completed in a set length of time.
Every perspective year, Urban Outfitters uses the fiscal year of February 1 to January 31. This is
how a company tracks its ongoing operations, which is primarily revenue minus expenditure, but
also income from a variety of different sources, allowing the company to observe profits and
losses when assets are sold. The gross profit made by a company through the sale of products
and services is referred to as revenue. Costs incurred in the usual course of business are known as
business expenditures. They can apply to both small and large businesses. The income statement
includes business costs. To arrive at a company's taxable net income, business expenditures are
reduced from revenue on the income statement. Deductions are another term for business costs.
In general, businesses have specific constraints and particular considerations when it comes to
deducting business expenses. Capital and operational expenditures are the two types of spending,
(Kagan, 2021). Gains are the proceeds earned from the sale of firm assets, whereas losses are the
funds lost by the firm.
Balance Sheets
A balance sheet is a financial statement that shows a company's assets, liabilities, equity capital,
total debt, and other financial information at a specific point in time. On one side of the balance
sheet are assets, while on the other side are liabilities. Both headings (liabilities and assets)
should equal (Assets = Liabilities + Equity) for the balance sheet to represent the genuine
picture. Urban Outfitters uses fiscal year, (Economic Times, 2021).
Advertising Expenses
Urban Outfitters spends a significant amount of money on advertising. This is usually seen in the
revenue statement, which shows dollar amounts for advertisements that ran during the fiscal year
in question. The selling of expenses portion of the revenue statement lists the costs of advertising
for Urban Outfitters. The selling of expenses portion of the revenue statement lists Urban
Outfitters advertising charges. For the fiscal years 2015, 2016, and 2017, the company spent
$103,882 on the lowest, $114,104 on the middle, and $127,159 on the highest. Both web creative
spending and advertising cost are classified as "selling, general, and administrative expenditures"
on Urban Outfitters' income statement (United States Securities and Exchange Commission,
2017).
Net sales
$ 3,545,794 $ 3,445,134 $ 3,323,077
Cost of sales
2,301,181 2,243,232 2,148,147
\
