
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Please do not give solution in image format thanku

Transcribed Image Text:Computing and Analyzing Cash Flow Ratios
Selected financial information from recent Form 10-K reports for Gap Inc. and American Eagle Outfitters Inc. follows.
•Note: All amounts relate to the current year unless indicated as a prior year amount.
($ millions)
Current liabilities, January 30, current year
Current liabilities, January 31, prior year
Total liabilities, January 30, current year
Total liabilities, January 31, prior year
Cash provided by operating activities
Cash paid for capital expenditures
Cash paid for dividends
Ratio
Current cash debt coverage
Cash debt coverage
Free cash flow: $ 0
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 dolllar
Ratio
Current cash debt coverage
Cash debt coverage
Free cash flow: $0
$
$
Gap Inc, American Eagle
Outfitters Inc.
$4,176
4,131
Gap Inc.
Numerator Denominator
$22,815
20,106
44,352
42,363
22,263
6,534
3,393
$
$
0 + $
0 + $
American Eagle Outfitters Inc.
Numerator Denominator
0
0 + $
0+5
0 =
5,049
5,013
4,777
1,476
873
O
Result
Result
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 3 steps with 2 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following QBO features can be used to save a transaction that will be re-used in the future? Multiple Choice Saved transactions (+) New icon Recurring transactions None of the choices is correct.arrow_forwardPlease help me,arrow_forwardDoes a user view always require multiple tables to support it? Explain.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education