Question

Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle...

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

 $ 963,700 $931,250

Total assets

 2,017,700 1,750,250

Current liabilities

 419,000 372,500

Total liabilities

 572,700 526,700

Net income

 175,000 404,500

Net cash provided by operating activities

 299,000 487,300

Capital expenditures

 255,000 279,200

Dividends paid on common stock

 88,000 120,200

Weighted-average shares outstanding

 203,000 213,600


(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 a dollar amount rounded to 2 decimal places $ enter a dollar amount 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).)

2017

2016

Free cash flow

 $enter a dollar amount $enter a dollar amount
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a. Current ratio=current assets/current liabilities

Current ratio, 2017=963,700/419,000=2.30

Current ratio, 2016=931,250/372,500=2.50

b. Earnings per share=Net Income/Outstanding shares

Earnings per share, 2017=175,000/203,000=0.86

Earnings per share, 2016=404,500/213,600=1.89

c. Debt to assets ratio=Total liabilities/Total assets

Debt to assets ratio, 2017=572,700/2017700=28.38%

Debt to assets ratio, 2016=526700/1750250=30.09%

d. Free cashflow=Net cash provided by operating activities-Capital expenditures

Free cashflow, 2017=299,000-255,000=$44,000

Free cashflow, 2016=487,300-279,200=$208,100

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose McDonald’s 2022 financial statements contain the following selected data (in millions). Current assets $3,446.0 Interest...
Suppose McDonald’s 2022 financial statements contain the following selected data (in millions). Current assets $3,446.0 Interest expense $479.0 Total assets 30,254.0 Income taxes 1,942.0 Current liabilities 3,013.0 Net income 4,557.0 Total liabilities 16,221.0 (a1) Compute the following values. a. Working capital. (Round to 1 decimal place, e.g. 5,275.5) $enter a dollar amount in millions millions b. Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) enter current ratio rounded to 2 decimal places :1 c. Debt to assets ratio. (Round...
Here is financial information for Larkspur, Inc. December 31, 2017 December 31, 2016 Current assets $...
Here is financial information for Larkspur, Inc. December 31, 2017 December 31, 2016 Current assets $ 108,500 $  92,800 Plant assets (net) 402,800 352,500 Current liabilities 101,800 67,500 Long-term liabilities 124,500 92,800 Common stock, $1 par 132,500 117,500 Retained earnings 152,500 167,500 Prepare a schedule showing a horizontal analysis for 2017, using 2016 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place,...
1. Using these data from the comparative balance sheet of Crane Company, perform horizontal analysis. (If...
1. Using these data from the comparative balance sheet of Crane Company, perform horizontal analysis. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 0 decimal places, e.g. 12%.) Increase or (Decrease) Dec. 31, 2022 Dec. 31, 2021 Amount Percentage Accounts receivable $ 489,060 $ 429,000 $enter a dollar amount enter percentages rounded to 0 decimal places % Inventory $ 731,250 $ 625,000 $enter a dollar amount enter...
Schellhammer Corporation reported the following amounts in 2016, 2017, and 2018. 2016 2017 2018 Current assets...
Schellhammer Corporation reported the following amounts in 2016, 2017, and 2018. 2016 2017 2018 Current assets $200,000 $210,000 $240,000 Current liabilities 150,000 168,000 184,000 Total assets 500,000 600,000 620,000 (b) Perform each of the three types of analysis on Schellhammer’s current assets. (Round percentages to 0 decimal places, e.g. 43% and ratios to 2 decimal places, e.g.1.58. Use Illustration 14-3 formula for Horizontal Analysis.) 2016 2017 2018 Horizontal Analysis Current assets % % % Vertical Analysis Current assets % %...
Ivanhoe Company provides you with the following balance sheet information as of December 31, 2017. Current...
Ivanhoe Company provides you with the following balance sheet information as of December 31, 2017. Current assets $12,100 Current liabilities $13,700 Long-term assets 29,300 Long-term liabilities 12,900    Total assets $41,400 Stockholders’ equity 14,800    Total liabilities and stockholders’ equity $41,400 In addition, Ivanhoe reported net income for 2017 of $19,000, income tax expense of $3,400, and interest expense of $1,600. Compute the current ratio and working capital for Ivanhoe for 2017. (Round current ratio to 2 decimal places, e.g. 2.75. Enter...
Here are the comparative income statements of Ayayai Corp.. AYAYAI CORP. Comparative Income Statement For the...
Here are the comparative income statements of Ayayai Corp.. AYAYAI CORP. Comparative Income Statement For the Years Ended December 31 2017 2016 Net sales $600,000 $500,000 Cost of goods sold 445,000 400,000 Gross Profit 155,000 100,000 Operating expenses 70,000 40,000 Net income $ 85,000 $ 60,000 (a) Prepare a horizontal analysis of the income statement data for Ayayai Corp., using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or...
Sheridan Company has $1,200,000 in assets and $1,200,000 in stockholders’ equity, with 42,200 shares outstanding the...
Sheridan Company has $1,200,000 in assets and $1,200,000 in stockholders’ equity, with 42,200 shares outstanding the entire year. It has a return on assets of 15%. During 2021, it had net income of $180,000. On January 1, 2022, it issued $375,000 in debt at 4% and immediately repurchased 21,100 shares for $375,000. Management expected that, had it not issued the debt, it would have had net income of $180,000 in 2022. Assume the company pays dividends on common stock equal...
The following data are taken from the financial statements of Rainsberger Company. 2018 2017 Accounts receivable...
The following data are taken from the financial statements of Rainsberger Company. 2018 2017 Accounts receivable (net), end of year $590,000 $505,000 Net sales on account 4,100,000 3,200,000 Terms for all sales are 1/10, n/60. Compute for each year the accounts receivable turnover. At the end of 2016, accounts receivable (net) was $515,000. (Round answers to 1 decimal place, e.g. 1.6.) 2018 2017 Accounts receivable turnover times times Compute for each year the average collection period. At the end of...
The following amounts were reported by Liquid Company in its most recent statement of financial position:...
The following amounts were reported by Liquid Company in its most recent statement of financial position: Cash $47,100 Accounts receivable (net) 130,000 Short-term investments 21,000 Inventory 390,000 Prepaid insurance 34,500 Property, plant, and equipment (net) 960,000 Accounts payable 83,000 Wages payable 37,000 Income tax payable 65,000 Sales tax payable 10,000 Notes payable (due within one year) 88,000 Bank loan payable (due in three years) 50,000 (a) Calculate the current ratio and quick ratio for Liquid Company. (Round answers to 2...
Additional information: The net cash provided by operating activities for 2022 was $190,200. The cash used...
Additional information: The net cash provided by operating activities for 2022 was $190,200. The cash used for capital expenditures was $91,000. The cash used for dividends was $30,200. The weighted-average common shares outstanding during the year was 50,000. (a) Compute the following values and ratios for 2022. (We provide the results from 2021 for comparative purposes.) (Round Current Ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT