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.) 2017 2016 Current assets $ 925,359 $1,020,834 Total assets 1,963,676 1,867,680 Current liabilities 401,763 376,178 Total liabilities 554,645 527,216 Net income 179,061 400,019 Net cash provided by operating activities 302,193 464,270 Capital expenditures 265,335 250,407 Dividends paid on common stock 82,394 80,796 Weighted-average shares outstanding 205,169 216,119 (a) Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.) 2017 2016 Current ratio enter current ratio rounded to 2 decimal places : 1 enter current ratio rounded to 2 decimal places : 1 (b) Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.) 2017 2016 Earnings per share $ enter earnings per share in dollars rounded to 2 decimal places $ enter earnings per share in dollars rounded to 2 decimal places (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 enter percentages rounded to 1 decimal place % enter percentages rounded to 1 decimal place % (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).)

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 17E

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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.)

	2017	2016
Current assets	$ 925,359	$1,020,834
Total assets	1,963,676	1,867,680
Current liabilities	401,763	376,178
Total liabilities	554,645	527,216
Net income	179,061	400,019
Net cash provided by operating activities	302,193	464,270
Capital expenditures	265,335	250,407
Dividends paid on common stock	82,394	80,796

Weighted-average shares outstanding	205,169	216,119

(a)

Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.)

		2017		2016
Current ratio		enter current ratio rounded to 2 decimal places	: 1		enter current ratio rounded to 2 decimal places	: 1

(b)

Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.)

		2017		2016
Earnings per share		$	enter earnings per share in dollars rounded to 2 decimal places		$	enter earnings per share in dollars rounded to 2 decimal places

(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		enter percentages rounded to 1 decimal place	%		enter percentages rounded to 1 decimal place	%

(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).)

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