Financial information for American Eagle is presented in Appendix A$,$ and financial information for Buckle is presented in Appendix B$.$

Required:

$1-$a$.$ Calculate the current ratio for both companies for the most recent year.

$1-$b$.$ Which company has the more favorable ratio?

$2-$a$.$ Calculate the acid$-$test $($quick$)$ ratio for both companies for the most recent year.

$2-$b$.$ Which company has the more favorable ratio?

$3.$ How would the purchase of additional inventory with accounts payable affect the current ratio for these two companies?