Question
East 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).
East 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 | $147,100 | $75,800 | ||||
Interest expense | 3,000 | 11,300 |
Fiscal Year 3 | Fiscal Year 2 | Fiscal Year 1 | ||||
Total assets (at end of fiscal year) | $2,051,366 | $1,951,300 | $1,755,082 | |||
Total stockholders' equity (at end of fiscal year) | 1,169,851 | 1,146,685 | 848,051 |
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 | % |
Fiscal Year 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 | % |
Fiscal Year 2 | % |
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