Suppose the following data were taken from the 2022 and 2021 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 2022 versus 2021. 

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.

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2021 2022 Current assets Total assets Current liabilities Total liabilities Net income Net cash provided by operating activities Capital expenditures Dividends paid on common stock Weighted-average common shares outstanding $ 925,359 1,963,676 401,763 554,645 179,061 302,193 265,335 $1,020,834 1,867,680 376,178 527,216 400,019 464,270 250,407 80,796 82,394 205,169 216,119