Suppose the following data were taken from the 2017 and 2016 financial statement
ID: 2336020 • Letter: S
Question
Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.)
Current assets
Total assets
Current liabilities
Total liabilities
Net income
Net cash provided by operating activities
Capital expenditures
Dividends paid on common stock
Weighted-average shares outstanding
(a)
Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.)
Current ratio
(b) Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.)
Earnings per share
(c)Calculate the debt to assets ratio for each year. (Round answers to 1 decimal place, e.g. 29.5%.)
2017
2016
Debt to assets ratio
(d)
Calculate the free cash flow for each year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
2017
2016
Free cash flow
2017 2016Current assets
$ 1,012,000 $ 1,036,000Total assets
2,045,000 1,893,500Current liabilities
440,000 370,000Total liabilities
591,200 522,700Net income
175,000 429,400Net cash provided by operating activities
298,000 459,700Capital expenditures
253,000 247,300Dividends paid on common stock
86,000 60,300Weighted-average shares outstanding
203,500 214,000Explanation / Answer
(a)
Current ratio = current assets / Current liabilities
(b)
Earnings per share = (net income - dividends paid on preferred stock) / weighted average shares outstanding
(c)
Debt to assets ratio = Total liabilities / Total assets
(d)
Free cash flow = Net cash provided by operating activities - Capital expenditures
2017 2016 Current ratio 2.3 : 1 ($1,012,000/$440,000) 2.8 : 1 ($1,036,000/$370,000)Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.