Question
In: Accounting
Exercise 2-11 Suppose the following data were taken from the 2017 and 2016 financial statements of...
Exercise 2-11
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 | $ 988,800 | $963,900 | ||
| Total assets | 1,940,000 | 1,866,000 | ||
| Current liabilities | 412,000 | 357,000 | ||
| Total liabilities | 566,480 | 544,872 | ||
| Net income | 165,600 | 347,200 | ||
| Net cash provided by operating activities | 283,000 | 490,800 | ||
| Capital expenditures | 250,000 | 284,800 | ||
| Dividends paid on common stock | 78,000 | 109,300 | ||
| Weighted-average shares outstanding | 207,000 | 217,000 |
(a)
Calculate the current ratio for each year. (Round
answers to 2 decimal places, e.g. 15.25.)
| 2017 | 2016 | ||||||
| Current ratio | : 1 | : 1 | |||||
(b)
Calculate earnings per share for each year. (Round
answers to 2 decimal places, e.g. 15.25.)
| 2017 | 2016 | ||||||
| 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
amounts in thousands. Enter negative amounts using either a
negative sign preceding the number e.g. -45 or parentheses e.g.
(45).)
|
2017 |
2016 |
|||
| Free cash flow | $ | $ |
Solutions
Expert Solution
| (a) | 2017 | 2016 | |
| Current ratio | 2.40 : 1 | 2.70 : 1 | |
| =988800/412000 | =963900/357000 | ||
| (b) | 2017 | 2016 | |
| Earnings per share | 0.80 | 1.60 | |
| =165600/207000 | =347200/217000 | ||
| (.c ) | 2017 | 2016 | |
| Debt to total assets ratio | 29.2% | 29.2% | |
| =566480/1940000 | =544872/1866000 | ||
| (d) | 2017 | 2016 | |
| Free Cash flow $ | 33 | 206 | |
| =(283000-250000)/1000 | =(490800-284800)/1000 |
ekkarill92 answered 1 year agoRelated Solutions
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