Suppose the following data were taken from the 2017 and 2016 fi nancial statements of American Eagle Outfi tters. (All dollars are in thousands.) LO8 2017 2016 Current assets $1,020,834 $1,189,108 Total assets 1,867,680 1,979,558 Current liabilities 376,178 464,618 Total liabilities 527,216 562,246 Net income 400,019 387,359 Net cash provided by operating activities 464,270 749,268 Capital expenditures 250,407 225,939 Dividends paid on common stock 80,796 61,521 Weighted-average shares outstanding 216,119 222,662 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