Financial information for American Eagle is presented in Appendix A at the end of the book, and
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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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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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