$4\mathrm{.}25$ Calculating and Interpreting Profitability Ratios. Abercrombie & Fitch sells casual apparel and personal care products for men, women, and children through retail stores located primarily in shopping malls. Its fiscal year ends January $31$ of each year. Financial statements for Abercrombie & Fitch for fiscal years ending January $31,$ Year $3,$ Year $4,$ and Year $5$ appear in Exhibit $4\mathrm{.}33($balance sheets$),$ Exhibit $4\mathrm{.}34($income statements$),$ and Exhibit $4\mathrm{.}35($statements of cash flows$).$ These financial statements reflect the capitalization of operating leases in property, plant, and equipment and long$-$term debt, a topic discussed in Chapter $6.$ Exhibit $4\mathrm{.}36($page $228)$ presents financial statement ratios for Abercrombie & Fitch for Years $3$ and $4.$ Selected data for Abercrombie & Fitch appear here.

REQUIRED

a$.$ Calculate the ratios in Exhibit $4\mathrm{.}36$ for Year $5.$ The income tax rate is $35\%.$

b$.$ Analyze the changes in ROA for Abercrombie & Fitch during the three$-$year period, suggesting possible reasons for the changes observed.

c$.$ Analyze the changes in ROCE for Abercrombie & Fitch during the three$-$year period, suggesting possible reasons for the changes observed.