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.)
Instructions: Perform each of the following.
(a) Calculate the current ratio for each year.
(b) Calculate earnings per share for each year.
(c) Calculate the debt to assets ratio for each year.
(d) Calculate the free cash flow for each year.
(e) Discuss American Eagle's solvency in 2017 versus 2016.
(f) Discuss American Eagle's ability to finance its investment activities with net cash provided by operating activities, and how any deficiency would be met.