1. PART A. Introduction Chief executive officer: Ralph Lauren Chief executive officer: Ralph Lauren Location of home office: United States Location of home office: United States Ending date of latest fiscal year was March 31, 2004 Ending date of latest fiscal year was March 31, 2004 Ralph Lauren has built an iconic luxury brand of clothing with universal appeal. Ralph Lauren provides a combination of old-world sophistication and modern silhouettes apparel. Some of the newest additions to the company include handbags, small leather goods and footwear. Ralph Lauren has built an iconic luxury brand of clothing with universal appeal. Ralph Lauren provides a combination of old-world sophistication and modern silhouettes apparel. Some of the newest additions to the company include handbags, small leather goods and footwear. The main geographic area of activity are mainly in Europe and in the United States, but recently opened in pacific Asia. The main geographic area of activity are mainly in Europe and in the United States, but recently opened in pacific Asia.

2. Executive Summary http://investor.polo.com/ Despite a decrease in Net Income and Profitability Ratios from 2004 to 2005, the company shows strength in other areas such as the liquidity ratios. Therefore I believe that Polo is a worthwhile company to invest in.

3. PART A. Audit Report  Name of company’s auditors Deloitte & Touche LLP.  The auditors believe that Ralph Lauren conformed with the Accounting Principles.

4. Polo Ralph Lauren www.Polo.com

5. PART A. Stock Market Information The most recent price of the company’s stock is $55.32. Twelve month trading range of the company’s stock was a high of $67.46 and a low of $45.65. Ralph Lauren has instituted a quarterly cash dividend of $0.05 per share. The date of the information above was October 9, 2005. I would definitely invest in stock for Ralph Lauren, seeing as it is such a successful company and is doing better every year. BUY !!

6. PART B. Industry Situation and Company Plans  Ralph Lauren is a one of the fastest growing company that has made many plans for the future. They plan to open more stores here in the US and over seas. As a successful company, Ralph Lauren also is giving back to the communities. Employees have put their effort to support the tsunami relief. Ralph Lauren has also opened a new line of clothing for the youth at their newly opened Rugby stores.

7. Men’s Polo Ralph Lauren

8. PART C. Income Statement  The format is a multistep format. 2004 2005  Gross Profit : 1,684,546 1,323,319  Income from Operations: 299,685 270,891  Net Income: 190,425 169,229  Ralph Lauren has increased the overall revenue from 2004 to 2005.

9. PART C. Statement of Cash Flows The cash flows from operations are MORE than net income for the past two years. Ralph Lauren is growing from investing activities. Ralph Lauren’s primary source of financing is stock sales. Overall, cash has increased over the past two years.

10. Women’s Polo Ralph Lauren

11. PART C. Balance Sheet 2005: 2,726,669 = 1,050,961 + 1,675,708 2004: 2,297,552 = 882,105 + 1,415,447 The accounts with the most change were the liabilities for the better.

12. Fragrance from Polo Ralph Lauren

13. PART D. Accounting Policies  Revenue Recognition: Revenue is recognized when the goods are sold and the risk of loss is transferred to the customer.  Cash: Included are highly liquid investments of 3 months or less. This includes short-term investments in debt securities.  Inventories: The company uses the “First in First Out” (FIFO) method.  Property and Equipment: Shown as initial cost less accumulated depreciation and amortization on a straight- line basis over 37.5 years.

14. PART E. Financial Analysis Market Strength Ratios Price/earnings per share: Price/earnings per share: Basic $1.92 Basic $1.92 Diluted $1.88 Diluted $1.88 Dividend yield: Dividend yield:$0.20

15. PART E. Financial Analysis Profitability Ratios A Profit Margin of 7.11% assumes a $0.07 net income per dollar in sales. Notice that this decreased from 2004 to 2005. The firm was more efficient in asset usage in 2005 as shown by the Asset Turnover value. Management is more efficient at using it’s assets in 2004 as shown by the higher Return on Assets. The company generates more profit with shareholders investment in 2004 as shown by the Return on Equity value.

16. PART E. Financial Analysis Liquidity Ratios Working Capital increases from 2004 to 2005, therefore Current Assets are increasing more relative to Current Liabilities. The average Day Sales Uncollected decreased from 2004 to 2005 therefore it takes a company less time to collect revenues after sales in 2005.