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

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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. Calculate American Eagle’s cash return on assets, cash flow to sales, and asset turnover ratio.
2. Calculate Buckle’s cash return on assets, cash flow to sales, and asset turnover ratio.
3. Which company is doing better based on cash return on assets? Which company has the higher cash flow to sales? Which company has the higher asset turnover?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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