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. Which company has a higher ratio of cash to noncash assets? What might this mean about the two companies' operations?
2. Which company has a higher ratio of cash to current liabilities? What might this mean about the two companies' ability to pay debt?