FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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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
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