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

Required:

1. For the most recent year, what amount does American Eagle report for current assets? What assets are listed as current assets? What is the ratio of current assets to total assets?

2. For the most recent year, what amount does American Eagle report for current liabilities? What liabilities are listed as current liabilities? What is the ratio of current liabilities to total liabilities?

3. List any current assets or current liabilities that likely relate to adjusting entries.

4. What is the change in retained earnings reported in the balance sheet?

5. For the most recent year, what is the amount of net income reported in the income statement?

6. Using your answers in 4 and 5, calculate the amount of dividends paid during the year. Verify your answer by looking at the retained earnings column in the statement of stockholders’ equity.