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Financial information for American Eagle is presented in Appendix A, and financial information...

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Question

Accounting

Financial information for American Eagle is presented in Appendix A, and financial information for Buckle is presented in Appendix B.
Required:
1-a. Calculate the following risk ratios for both companies for the most recent year.
calculations and final answers to 1 decimal place.)
Risk Ratios AMERICAN EAGLE THE BUCKLE
a. Receivables turnover ratio times times
b. Average collection period days days
c. Inventory turnover ratio times times
d. Average days in inventory days days
e. Current ratio
f. Acid-test ratio
g. Debt to equity ratio %%
1-b. Based on these calculations, which company appears to be more risky?
2-a. Calculate the following profitability ratios for both companies for the most recent year.
Profitability Ratios AMERICAN EAGLE THE BUCKLE
a. Gross profit ratio %%
b. Return on assets %%
c. Profit margin %%
d. Asset turnover times times
e. Return on equity %%
2-b. Based on these calculations, which company appears to be more profitable?

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