Comparing Ratios for Luxury and Budget Retailers Following are selected financial statement data from Capri Holdings (a retailer that owns upscale brands Michael Kors, Jimmy Choo, and Versace) and Five Below (a value-priced toy and novelty retailer). Capri Holdings Five Below ($ millions) (s thousands) 2018 2017 2018 2017 Sales $4,954.5 $4,718.4 $1,637.541 $1,342,118 Cost of sales 1,989.5 1,960,6 1,064,091 871,831 Net income 633.5 590.1 160.120 109,623 Average equity 1,895,3 1,883.7 563,667 414,731 Required a. Calculate the gross profit for each company for both years. Gross profit is equal to sales minus the cost of sales, b. Calculate gross profit as a percentage of sales for each company for both years. C. Compute the return on equity for each company for both years. Notes: For gross profit, enter Capri Holdings in millions and Five Below in thousands. Round gross profit percentage and ROE to one decimal place (example: 0.2345 = 23.5%). Capri Holdings Five Below 2018 2017 2018 2017 a. Gross profit X$ X $ b. Gross profit percentage X c. Return on equity (ROE) $ X