Capri Holdings ($ millions) 2018 Five Below ($ thousands) 2017 2018 2017 Sales Cost of sales $4,813.0 $4,583.6 $1,590,754 $1,303,772 1,915.1 1,887.3 1,024,312 839,239 Net income Average equity 1,841.1 1.829.9 609.9 568.0 154.134 105,525 547,563 402,882 Required a. Calculate the gross profit for each company for both years. Gross profit is equal to sales mi cost of sales. b. Calculate gross profit as a percentage of sales for each company for both years. c. Compute the return on equity for each company for both years. Notes: For gross profit, enter Capri Holdings in millions and Five Below in thousands. Round gross profit percentage and ROE to one decimal place (example: 0.2345 = 23.5%). Capri Holdings Five Below 2018 2017 a. Gross profit $ b. Gross profit percentage 2.897.9 $ 60.2 96 M 2,696.3 $ 58.8 % 2018 566,442 S 2017 464,533 35.6 96 35.6 % c. Return on equity (ROE) 0% * 0% * 096 x d. Which of the following best explains why the ratios for Five Below and Capri Holdings differ? Select the corresponding number for the correct answer: 3. : 1. Capri Holdings is much larger than Five Below and so its ratios are naturally larger. 2. Five Below is a younger company and so its ratios are naturally lower. 3. Capri Holdings' brand recognition creates a competitive advantage, which allows the comp. 4. Five Below Imports its products from Southeast Asia, which allows the comms