The following data were taken from the 2009 and 2008 financial statements of American Eagle Outfitters. (All dollars are in thousands.)

InstructionsPerform each of the following.(a) Calculate the debt to total assets ratio for each year.(b) Calculate the free cash flow for each year.(c) Discuss American Eagle's solvency in 2009 versus 2008.(d) Discuss American Eagle's ability to finance its investment activities with cash provided by operating activities, and how any deficiency would bemet.

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2008 $1,020,834 1,867,680 376,178 2009 $ 925,359 1,963,676 401,763 554,645 Current assets Total assets Current liabilities Total liabilities Total stockholders' equity Cash provided by operating activities Capital expenditures Dividends paid 527,216 1,340,464 464,270 250,407 80,796 1,409,031 302,193 265,335 82,394