Question: Selected financial information from recent Form 10-K reports for Gap Inc. and American Eagle Outfitters Inc. follows. Note: All amounts relate to the current

Selected financial information from recent Form 10-K reports for Gap Inc. and

Selected financial information from recent Form 10-K reports for Gap Inc. and American Eagle Outfitters Inc. follows. Note: All amounts relate to the current year unless indicated as a prior year amount. ($ millions) Current liabilities, January 30, current year Current liabilities, January 31, prior year Total liabilities, January 30, current year Gap Inc, American Eagle Outfitters Inc. $1,268 $232 1,117 230 2,464 281 2,354 279 694 149 363 82 189 49 Total liabilities, January 31, prior year Cash provided by operating activities Cash paid for capital expenditures Cash paid for dividends a. For each company, compute the following ratios for the current fiscal year: current cash debt coverage; cash debt coverage; and free cash flow Note: Round to the nearest whole dollar Gap Inc. Ratio Numerator Denominator Result Current cash debt coverage $ Cash debt coverage $ 0x + $ 0 x $ 0x = 50 x Free cash flow: $ 0 American Eagle Outfitters Inc. Ratio Numerator Denominator Result Current cash debt coverage $ Cash debt coverage $ 0x + $ 0 x $ 0 x 0x = Free cash flow: $ 0 0

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