AP 3-4

5th edition

Fhancial inforrna60n tor American Eagle is in Apperxiix A at the end of the tx)0k and financial information tor Ttw Buckle is in Apperdix B at tie erd of ttE book. 1. Determine mnvany rrintains a ratb Of currmt assets to total assets. How rn"ht tNs be an advantage tor the company? 2. Determine whth convany maintains a higher ratb of currmt to total How might this be a disadvantage for the company? 3. The dividend payout ratb equals divends paid during the year divided by net irtorne. Determine which company has a higher divkiend payout ratio. Why might this be the case?