I need help with how to answer question E2.12. If you can provide the formula to the answers that will be great as well.

TER 2 A Further Look at Financial Statements c. Discuss the pros and cons of the current ratio and working capital as measures of liquidity. d. Was it unethical for the CFO to take these steps? interpret solvency E2.12 (LO 2), AP Suppose the following data were taken from the 2022 and 2021 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.) 2022 2021 Current assets Total assets $ 925,359 $1,020,834 Current liabilities 1,963,676 1,867,680 Total liabilities 401,763 376,178 Net income 554,645 527,216 Net cash provided by operating activities 179,061 400,019 Capital expenditures 302,193 464,270 265,335 250,407 Dividends paid on common stock 82,394 80,796 Weighted-average common shares outstanding 205,169 216,119 Instructions Perform each of the following. a. Calculate the current ratio for each year. b. Calculate earnings per share for each year. c. Calculate the debt to assets ratio for each year. d. Calculate the free cash flow for each year. e. Discuss American Eagle's solvency in 2022 versus 2021. f. Discuss American Eagle's ability to finance its investment activities with net cash provided by oper- ating activities, and how any deficiency would be met. bunting assumptions E2.13 (LO 3), K Presented below are the assumptions and principles discussed in this chapter. es. 1. Full disclosure principle 4. Periodicity assumption 2. Going concern assumption 5. Historical cost principle 3. Monetary unit assumption 6. Economic entity assumption Instructions Identify by number the accounting assumption or principle that is described below. Do not use a number more than once. a. Belief that a company will remain in business for the foreseeable future. (Note: Do not use the historical cost principle.) b. Indicates that personal and business recordkeeping should be separately maintained. c. Only those things that can be expressed in money are included in the accounting records. d. Separates financial information into time periods for reporting purposes. e. Measurement basis used when a reliable estimate of fair value is not available. f. Dictates that companies should disclose all circumstances and events that make a difference to financial statement users. bunting terminology. E2.14 (LO 1, 2, 3), K The following list of terms or phrases are discussed in this chapter. 1. Free cash flow 2. Securities and Exchange Commission (SEC) 3. Solvency 4. Financial Accounting Standards Board (FASB) 5. Materiality 6. Cost constraint 7. Faithful representation 8. Liquidity 9. Working capital 10. Operating cycle 11. Generally accepted accounting principles (GAAP) 12. Current liabilities 13. Relevance 14. Verifiable