Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cybersecurity In Finance

Authors: Sylvain Bouyon, Simon Krause

1st Edition

1786612178, 9781786612175

More Books

Students also viewed these Finance questions