Dieston 3 Not yet answered Marked out of 667 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 Versaces and Five Below (a value-priced toy and novelty retailer). Saes Cost of sales Capri Haldings Five Below (thousands) 2018 2017 2018 2017 546242 544018 $1.528.372 $1.252444) 17477 17224 934,809 265,907 166 5184 140,666 96304 526,005 387.03 Average aquity 1746.917581 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 milions and Five Below in thousands Round gross profit percentage and ROE to one decimal place (example: 0.2345-23.5%) 2018 Capri Holdings 2017 2017 Gross profe Gross prot percentage CC Return on equ d. Which of the following best explains why the ratios for Five Below and Capn Holdings differ? Select the corresponding number for the correct answer. 1. Capri Holdings is much larger than Five Below and so its ratios are naturally larger