Exercise 2-11

Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.)

		2017		2016
Current assets		$ 865,200		$980,000
Total assets		1,897,200		1,812,000
Current liabilities		412,000		350,000
Total liabilities		562,900		504,700
Net income		180,000		404,800
Net cash provided by operating activities		335,000		486,000
Capital expenditures		300,000		270,600
Dividends paid on common stock		78,000		119,500
Weighted-average shares outstanding		201,500		212,500

(a) Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.)

		2017			2016
Current ratio			: 1			: 1

(b) Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.)

		2017			2016
Earnings per share		$			$

(c) Calculate the debt to assets ratio for each year. (Round answers to 1 decimal place, e.g. 29.5%.)

		2017			2016
Debt to assets ratio			%			%

(d) Calculate the free cash flow for each year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		2017		2016
Free cash flow		$		$