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

Required:

$1-$a$.$ Calculate the current ratio for the past two years.

$1-$b$.$ Did the current ratio improve or worsen in the more recent year?

$2-$a$.$ Calculate the acid$-$test $($quick$)$ ratio for the past two years.

$2-$b$.$ Did the acid$-$test ratio improve or worsen in the more recent year?

$3.$ If American Eagle used $$100$ million in cash to pay $$100$ million in accounts payable, how would its current ratio and acid$-$test ratio change?