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	$151,000		$77,800
Interest expense	3,100		11,600

	Fiscal Year 3		Fiscal Year 2		Fiscal Year 1
Total assets (at end of fiscal year)	$2,507,183		$2,384,881		$2,085,119
Total stockholders' equity (at end of fiscal year)	1,303,504		1,277,692		945,166

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 thanless than

the return on total assets due to the

positivenegative

use of leverage.

d. During fiscal Year 3, East Points results were

strongweak

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

moreless

than the industry average. The return on stockholders equity was

moreless

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

moreless

leverage than the industry, on average.