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Computing and Analyzing Cash Flow Ratios Selected financial information from recent Form 10-K reports for Gap Inc, and American Eagle Outficters Inc. follows. - Note:

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Computing and Analyzing Cash Flow Ratios Selected financial information from recent Form 10-K reports for Gap Inc, and American Eagle Outficters Inc. follows. - Note: All amounts relate to the current year unless indicated as a prior year amount. 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 dolliar Free cash flow: b. Briefly analyze and interpret the results. As compared to American Eagle Outfitters Inc., Gap Inc. has a: Current cash debt coverage Cash debt coverage These results indicate the following about Gap inc. when comparing to American Eagle Outfitters Inc: Liquidity Solvency As compared to American Eagle Outfitters Inc., Gap Inc. has a: Free cash flow This indicates the following about Gap inc. when comparing to American Eagle Outfitters Inc.: Amount of cash available for discretionary purposes

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