Question: Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix

Financial information for American Eagle is presented in Appendix A at the end of the book, and financial information for Buckle is presented in Appendix B at the end of the book.

Required:

1. Determine which company maintains a higher ratio of current assets to total assets. How might this be an advantage for the company?

2. Determine which company maintains a higher ratio of current liabilities to total liabilities. How might this be a disadvantage for the company?

3. The dividend payout ratio equals dividends paid during the year divided by net income. Determine which company has a higher dividend payout ratio. Why might this be the case?

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Requirement 1 For American Eagle the ratio of current assets to total assets is 065 1141800 1756053 ... View full answer

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