Suppose the following data were taken from the 2017 and 2016 fi nancial statements of American Eagle Outfi tters. (All numbers, including share data, are in thousands.) LO8 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 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 fl ow for each year.

(e) Discuss American Eagle’s solvency in 2017 versus 2016.

(f) Discuss American Eagle’s ability to fi nance its investment activities with net cash provided by operating activities, and how any defi ciency would be met.