American Eagle Outfitters Inc. (AEO) operates specialty retail stores, selling clothing such as denim, sweaters, t-shirts, and
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Question:
American Eagle Outfitters Inc. (AEO) operates specialty retail stores, selling clothing such as denim, sweaters, t-shirts, and fleece outerwear that targets 15-to-25-year-old men and women. The following asset and liability data (in millions) were adapted from recent financial statements.
Line Item Description | Year 2 | Year 1 |
---|---|---|
Current assets: | ||
Cash | $435 | $850 |
Accounts receivable | 287 | 146 |
Inventory | 553 | 405 |
Prepaid and other current assets | 122 | 121 |
Total current assets | $1,397 | $1,522 |
Total current liabilities | $843 | $858 |
1. Compute quick assets for Years 2 and 1.
Line Item Description | Quick Assets |
---|---|
Year 2 | $million |
Year 1 | $million |
2. Compute the quick ratio for Years 2 and 1. Round your answers to two decimal places.
Line Item Description | Quick Ratio |
---|---|
Year 2 | |
Year 1 |
3. American Eagle Outfitters' quick assets
by $ million during Year 2. Its quick ratio
by during Year 2. Overall, American Eagle Outfitters' liquidity position has
from Year 1 to Year 2.
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