Comparing Companies within an Industry Refer to the financial statements of American Eagle (Appendix B) and Urban

Question:

Comparing Companies within an Industry Refer to the financial statements of American Eagle (Appendix B) and Urban Outfitters (Appendix C) and the Industry Ratio Report (Appendix D) at the end of this book. Most companies report some amounts of bonds payable on their balance sheets. It is somewhat surprising, therefore, that neither company reports any bond liabilities.

Required:

1. Examine the statements of cash flow for both companies. What is the primary source for cash flow for both companies?

2. Two financial ratios (the debt-to-equity ratio and the times interest earned ratio) are discussed in this chapter. Are they relevant for these companies? Explain.

Financial Statements
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... Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...