Refer to the financial statements of American Eagle Outfitters given in Appendix B at the end of
Question:
Refer to the financial statements of American Eagle Outfitters given in Appendix B at the end of this book.
Required:
1. On the statement of cash flows, what was the largest item (in absolute value) listed under “Adjustments to reconcile net income to net cash provided by operating activities”? What was the largest “Changes in assets and liabilities” in the operating section of the cash flow statement? Explain the direction of the effect of each in the reconciliation.
2. Examine American Eagle Outfitters’s investing and financing activities. List the company’s three largest uses of cash over the past three years. List two major sources of cash for these activities.
3. What was free cash flow for the year ended January 31, 2009? What does this imply about the company’s financial flexibility?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
Step by Step Answer:
Req 1 Depreciation and amortization was the largest item The 133141 expense was added to net income ...View the full answer
