Financial information for American Eagle is presented in Appendix A$,$ and financial information for Buckle is presented in Appendix B$.$

Required:

$1-$a$.$ Calculate the following risk ratios for both companies for the most recent year.

calculations and final answers to $1$ decimal place.$)$

Risk Ratios AMERICAN EAGLE THE BUCKLE

a$.$ Receivables turnover ratio times times

b$.$ Average collection period days days

c$.$ Inventory turnover ratio times times

d$.$ Average days in inventory days days

e$.$ Current ratio

f$.$ Acid$-$test ratio

g$.$ Debt to equity ratio $\%\%$

$1-$b$.$ Based on these calculations, which company appears to be more risky?

$2-$a$.$ Calculate the following profitability ratios for both companies for the most recent year.

Profitability Ratios AMERICAN EAGLE THE BUCKLE

a$.$ Gross profit ratio $\%\%$

b$.$ Return on assets $\%\%$

c$.$ Profit margin $\%\%$

d$.$ Asset turnover times times

e$.$ Return on equity $\%\%$

$2-$b$.$ Based on these calculations, which company appears to be more profitable?