Exercise 2-11 - 19 difficult. American Eagle's cash flow...

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59 Name Jacqueline Reyes Exercise 2 Section MW 2:00pm-3:40pm Date 9/12/2011 American Eagle Outfit 2009 2008 1 (a) Debt to total assets ratio 2 $554,645 $527,216 3 $1,963,676 28% $1,867,680 28% 4 5 (b) Free cash flow 6 $302,193 $464,270 7 $265,335 $250,407 8 $82,394 $80,796 9 $(45,536) $133,067 10 11 (c) American Eagle's solvency in 2009 stayed the same as it did in 2008. In both years the debt 12 total assets ratio was 28%. 13 14 15 16 17 18 (d) American Eagle's ability to finance its investment with activities with cash provided, would be
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Unformatted text preview: 19 difficult. American Eagle's cash flow went from $133,067 to negative $45,536. Instead of 20 increasing its cash flow, the company didnt make enough cash from operations to pay its 21 investment activities. 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 59 59 2-11 itters 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 59...
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Exercise 2-11 - 19 difficult. American Eagle's cash flow...

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