Question
ast Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East Point is provided below (all numbers in thousands).
ast Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East Point is provided below (all numbers in thousands).
Fiscal Year 3 | Fiscal Year 2 | |||||
Net income | $141,000 | $72,600 | ||||
Interest expense | 2,900 | 10,900 |
Fiscal Year 3 | Fiscal Year 2 | Fiscal Year 1 | ||||
Total assets (at end of fiscal year) | $3,511,845 | $3,340,535 | $3,082,541 | |||
Total stockholders' equity (at end of fiscal year) | 1,010,000 | 990,000 | 718,236 |
Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders equity is 15.0% for the year ended April 2, Year 3.
a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round to one decimal place.
Fiscal Year 3 | fill in the blank 1 % |
Fiscal Year 2 | fill in the blank 2 % |
b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place.
Fiscal Year 3 | fill in the blank 3 % |
Fiscal Year 2 | fill in the blank 4 % |
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