Question
Computing and Analyzing Cash Flow Ratios Selected financial information from recent Form 10-K reports for Gap Inc. and American Eagle Outfitters Inc. follows. Note:
Computing and Analyzing Cash Flow Ratios Selected financial information from recent Form 10-K reports for Gap Inc. and American Eagle Outfitters Inc. follows. Note: All amounts relate to the current year unless indicated as a prior year amount. ($ millions) Gap Inc, American Eagle Current liabilities, January 30, current year $22,815 Outfitters Inc. $4,176 Current liabilities, January 31, prior year 20,106 4,131 Total liabilities, January 30, current year 44,352 5,049 Total liabilities, January 31, prior year 42,363 5,013 Cash provided by operating activities Cash paid for capital expenditures Cash paid for dividends 22,263 4,777 6,534 1,476 3,393 873 a. For each company, compute the following ratios for the current fiscal year: current cash debt coverage; cash debt coverage; and free cash flow Note: Round to the nearest whole dolllar Gap Inc. Ratio Numerator Denominator Result Current cash debt coverage $ Cash debt coverage $ 0 + $ 0+ $ 0 = 0 = Free cash flow: $ 0 American Eagle Outfitters Inc. Ratio Numerator Denominator Result Current cash debt coverage $ 0+ $ 0 = Cash debt coverage $ 0 + $ 0 = Free cash flow: $ 0
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