Hinding Financial Information LO 3-2, 3-4, 3-6 Refer to the financial statements of Urban outfitters in Appendix Cat the end of the book.

Required:

1. What is the company's revenue recognition policy? (Hint: Look in the notes to the financial statements.)

2. Assuming that $50 million of cost of sales was due to noninventory purchase expenses (distribution and occupancy costs), how much inventory did the company buy during the year?

(Hint: Use a T-account of inventory to infer how much was purchased.) INVENTORY (in thousands) inventory purchased during the year