Calculate the debt to total assets ratio

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Reference no: EM1359294

The following data were taken from the 2004 and 2003 financial statements of American Eagle Outfitters. (All dollars are in thousands.)
2004 2003
Current assets $525,623 $427,878
Total assets 865,071 741,339
Current liabilities 189,035 141,586
Total liabilities 221,401 163,857
Total stockholders' equity 643,670 577,482
Cash provided by operating activities 189,469 104,548
Capital expenditures 64,173 61,407
Dividends paid -0- -0-
Instructions (show work)
Perform each of the following.
(a) Calculate the debt to total assets ratio for each year.
(b) Calculate the free cash flow for each year.
(c) Discuss American Eagle's solvency in 2004 versus 2003.
(d) Discuss American Eagle's ability to finance its investment activities with cash provided
by operating activities, and how any deficiency would be met.

Reference no: EM1359294

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