Question

Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book.

Required:
1. Which company reports higher total assets?
2. Which company reports higher total liabilities? Does this always mean this company has a higher chance of not being able to repay its debt and declare bankruptcy? Explain.
3. What relevant information do total assets and total liabilities provide to creditors deciding whether to lend money to American Eagle versus Buckle?
4. Which company reports higher net income? Does this always mean this company’s operations are more profitable? Explain.
5. What relevant information does net income provide to investors who are deciding whether to invest in American Eagle versus Buckle?



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  • CreatedJuly 15, 2014
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