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AP12-2 Financial Analysis: American Eagle Outfitters, Inc. Financial information for American Eagle is presented in Appendix A. Required: 1. Calculate the following risk ratios for the year ended February 3, 2018. (Use 365 days a year. Round your intermediate calculations and final answers to 1 decimal place.) 2. Calculate the following profitability ratios for the year ended February 3, 2018. (Round your intermediate calculations and final answers to 1 decimal place.)

A. Perform risk and profitability ratio calculations based on the provided financial information.
B. Analyze the financial information without calculating risk and profitability ratios.
C. Skip the financial analysis for American Eagle.
D. Request additional financial data for a comprehensive analysis.

1 Answer

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Final answer:

Without the specific financial data from Appendix A, it is not possible to calculate the risk and profitability ratios for American Eagle Outfitters, Inc. Furthermore, analysis of the percentage of female wage and salary earners requires additional data to estimate for 1991 and 1988 and to evaluate any linear relationships or outliers.

Step-by-step explanation:

To determine the risk and profitability ratios for the year ended February 3, 2018, for American Eagle Outfitters, Inc., specific financial data from the provided financial statements would be required. Unfortunately, without the provided financial information from Appendix A, it's not possible to calculate these ratios.

For a comprehensive analysis, including calculating risk ratios (like the current ratio and quick ratio) and profitability ratios (like the net profit margin and return on equity), the appropriate data from the Appendix A should be used. Generally, these calculations involve using certain elements of the income statement and balance sheet such as total liabilities, current assets, revenue, and net income.

Regarding the analysis of the percentage of female wage and salary earners who are paid hourly rates, to answer questions regarding a linear relationship or identify outliers, one would typically analyze this data using statistical methods. However, specific data points for the years 1991 and 1988 are required to perform this analysis or make an estimate. Such calculations would likely involve linear regression to determine if there's a linear relationship and identify any outliers.

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