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	$146,400		$75,400
Interest expense	3,000		11,300

	Fiscal Year 3	Fiscal Year 2	Fiscal Year 1
Total assets (at end of fiscal year)	$3,062,700		$2,913,300		$2,680,248
Total stockholders' equity (at end of fiscal year)	1,012,767		992,713		720,923

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 %

c. The return on stockholders' equity is

greater than/less than

the return on total assets due to the

positive/negative

use of leverage.

d. During fiscal Year 3, East Points results were

strong/weak

compared to the industry average. The return on total assets for East Point was

more/less

than the industry average. The return on stockholders equity was

more/less

than the industry average. These relationships suggest that East Point has

more/less

leverage than the industry, on average.