Refer to the financial statements of Abercrombie & Fitch and Aeropostale that are supplied with this text.

Required:
1. Look at Abercrombie & Fitch’s and Aeropostale’s footnotes. Describe their largest borrowing arrangements and balances at January 30, 2010.
2. Calculate Abercrombie & Fitch’s and Aeropostale’s times interest earned (accrual basis—in this case interest expense ¼ interest payments for both firms) for the years ended January 31, 2009, and January 30, 2010.
3. Calculate Abercrombie & Fitch’s and Aeropostale’s long-term debt to equity ratio for the years ended January 31, 2009, and January 30, 2010.
4. Calculate Abercrombie & Fitch’s and Aeropostale’s debt to equity ratio for the years ended January 31, 2009, and January 30, 2010.
5. Calculate Abercrombie & Fitch’s and Aeropostale’s long-term debt to total assets ratio for the years ended January31, 2009, and January 30, 2010.
6. Calculate Abercrombie & Fitch’s and Aeropostale’s debt to total assets ratio for the years ended January 31, 2009, and January 30, 2010.
7. Comment on Abercrombie & Fitch’s and Aeropostale’s debt management.