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

$925,359 $1,020,834

Total assets

1,963,676 1,867,680

Current liabilities

401,763 376,178

Total liabilities

554,645 527,216

Net income

179,061 400,019

Net cash provided by operating activities

302,193 464,270

Capital expenditures

265,335 250,407

Dividends paid on common stock

82,394 80,796

Weighted-average shares outstanding

205,169 216,119

(a)

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

(b)

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

(c)

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

(d)

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