Ann Taylor Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for Ann
Question:
Ann Taylor Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for Ann Taylor is provided below (all numbers in thousands).
Assume the apparel industry average rate earned on total assets is 8.2%, and the average rate earned on stockholders' equity is 10.0% for the year ended February 3, 2007 (fiscal year 2006).(a) Determine the rate earned on total assets for Ann Taylor for the fiscal years ended February 3, 2007, and January 28, 2006. Round to one digit after the decimal place.(b) Determine the rate earned on stockholders' equity for Ann Taylor for the fiscal years ended February 3, 2007, and January 28, 2006. Round to one decimal place.(c) Evaluate the two-year trend for the profitability ratios determined in (a) and (b).(d) Evaluate Ann Taylor's profit performance relative to the industry.
Step by Step Answer:
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren