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Aeropostale, Inc. (AROPQ) is a specialty retailer of casual apparel and accessories for teens. Recently, the company declared bankruptcy to provide financial protection while attempting to reorganize its operations. Annual report information for the three most recent years prior to the bankruptcy are as follows (in millions): Year 3 Year 2 Year 1 $(68) $(56) $(38) (16) (24) (84) 1,507 1,839 2,091 a. Determine the free cash flow. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Enter answers in millions. Net cash flows used for operating activities Cash used to purchase property, plant, and equipment Sales Year 3: S Year 2: $ Year 1: $ b. Determine the ratio of free cash flow to sales. Round percentages to one decimal place. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Year 3: Year 2: Year 1: % % % c. Did the free cash flow information indicate financial stress? The free cash flow information accurately show the financial stress on Aeropostale. The free cash flow and ratio of free cash flow to sales were in the most recent three years prior to bankruptcy. Moreover, the amount of cash used to purchase property, plant, and equipment if the purchases of property, plant, and equipment had remained at the Year 1 across the three years. Thus, the free cash flow would have been even more levels. It appears that Aeropostale attempted to save cash by reducing property, plant, and equipment purchases. Lastly, the sales levels were trend. years. This is considered an across the three A

son. c. Did the free cash flow informanion indicate financial stress? the froe casti flow information accurately show the financial seress on Acropostak. The freet cash flow and ratio of free canh liam to sales were in the most recent three years priar to bankruptcy. Moreoves, the amount of cash used to purctase property, plant, and eouiphere across the throe vears. Thus, the free cash flow would have been even more if the purchases of property, plant, and equpment had retrained at the Yaar- 1 levels: It appears that Aeropostale attempted to save cash by reducing property, plant, and equipment parchases. Lastly, the sales levels were across the this vears. This is considered an orend. \begin{tabular}{ll} Year 3: & % \\ Year 2: & % \\ Year 1: & % \end{tabular} c. Did the free cash flow information indicate financial stress? The free cash flow information inthe \begin{tabular}{l} s prior to bankruptcy. Moreover, the \\ d have been even more \end{tabular} levels. It appears that Aeropostale attempted to save cash by reducing property, plant, years. This is considered an \begin{tabular}{r|l} Year 3: & % \\ Year 2: & % \\ Year 1: & % \end{tabular} c. Did the free cash flow information indicate financial stress? The free cash flow information accurately show the fin in the most recent three years prior to bankruptcy. - Thus, the free cash flow would have been even more Aeropostale attempted to save cash by reducing prope years. This is considered an trend. one decimal place. For those boxes in which you must enter subtracted or negative numbers use a minus financial stress on Aeropostale. The free cash flow and ratio of free cash flow to sales were Moreover, the amount of cash used to purchase property, plant, and equipment if the purchases of property, plant, and equipment ha perty, plant, and equipment purchases. Lastly, the sales levels were - three of free cash flow to sales. Round percentages to one decimal place. For those boxes in which you must enter subtra information indicate financial stress? rmation accurately show the financial stress on Aeropostale. The free cash flow and ratio of free in the most recent three years prior to bankruptcy. Moreover, the amount of cash used to purchase property, plant, and Thus, the free cash flow would have been even more if the purchases of property, plant, and eqt Aeropostale attempted to save cash by reducing prope ient purchases. Lastly, the sales levels were ed an trend. centages to one decimal place. For those boxes in which you must enter subtracted or negative numbers use a n ? ately show the financial stress on Aeropostale. The free cash flow and ratio of free cash flow to sales were to bankruptcy. Moreover, the amount of cash used to purchase property, plant, and equipment been even more if the purchases of property, plant, and equipment had remained at the Yea by reducing property, plant, and equipment purchases. Lastly, the sales levels were across thi b. Determine the ratio of free cash flow to sales. Round percentages to one decimal place. For tho sign. \begin{tabular}{l|l} Year 3: & % \\ Year 2: & % \\ Year 1: & % \end{tabular} c. Did the free cash flow information indicate financial stress? The free cash flow information accurately show the financial stress on Aeropost in the most recent three years prior to bankruptcy. Moreover, the amount of cas across the three years. Thus, the free cash flow would have been even more levels. It appears that Aeropostale attempted to save cash by reducing property, plant, and equipment years. This is considered an trend

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