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What is the year-over-year cash change percent? Use the attached financial data to calculate the ratios for 2021. Round to the nearest decimal.

Financial Data for American Eagle Outfitters (AEO)

\begin{tabular}{l|l|l}
& 2021 & 2020 \\
Revenue & \[tex]$5,011 & \$[/tex]3,759 \\
Cost of Sales & \[tex]$3,019 & \$[/tex]2,611 \\
Total Operating Expenses & \[tex]$1,222 & \$[/tex]977.3 \\
Interest Expense & \[tex]$34.6 & \$[/tex]24.6 \\
Income Tax Expense & \[tex]$139.3 & \$[/tex]83.0 \\
& & \\
Cash + Equivalents & \[tex]$434.8 & \$[/tex]850.5 \\
A/R & \[tex]$286.7 & \$[/tex]146.1 \\
Inventories & \[tex]$553.5 & \$[/tex]405.4 \\
Prepaid Expenses & \[tex]$122 & \$[/tex]12.1 \\
Total Current Assets & \[tex]$1,397 & \$[/tex]1,523 \\
Total Assets & \[tex]$3,787 & \$[/tex]3,435 \\
& & \\
A/P & \[tex]$231.8 & \\
Total Current Liabilities & \$[/tex]842.9 & \[tex]$255.9 \\
Long-term Debt & \$[/tex]341.0 & \[tex]$858.5 \\
& & \$[/tex]325.3 \\
\end{tabular}



Answer :

GinnyAnswer
To find the year-over-year cash change percent using the provided financial data, follow these steps:

1. Identify the Relevant Data:
- Cash + Equivalents in 2021: \[tex]$434.8 million - Cash + Equivalents in 2020: \$[/tex]850.5 million

2. Calculate the Change in Cash + Equivalents:
- Cash change = Cash + Equivalents (2021) - Cash + Equivalents (2020)
- Cash change = \[tex]$434.8 million - \$[/tex]850.5 million
- Cash change = -\$415.7 million

3. Calculate the Percent Change:
- Percent change is calculated as [tex]\( \left( \frac{{\text{Cash change}}}{{\text{Cash + Equivalents (2020)}}} \right) \times 100 \)[/tex]
- Percent change = [tex]\( \left( \frac{{-415.7}}{{850.5}} \right) \times 100 \)[/tex]
- Percent change ≈ -48.87713109935332%

4. Round to the Nearest Decimal:
- Rounded percent change = -48.9%

Therefore, the year-over-year cash change percent is approximately -48.9%.

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