PROFITABILITY RATIOS Use Apparel’s financial statements in Exercise 12-65 and the information below to respond to the following requirements.

Statement Item January 1, 2008

(In Thousands)

Total assets $3,485,233 Total stockholders’ equity 2,083,122 Required:

. Compute the five profitability ratios for 2008 and 2009.

. Explain what these ratios suggest about Apparel’s profitability. Indicate what other information you would like to know to further access Apparel’s profitability.

Exercise