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eBook Question Content Area Profitability Metrics East Point, Inc., sells merchandise through company-owned retail stores and an Internet Website. Recent financial information for East Point

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Profitability Metrics

East Point, Inc., sells merchandise through company-owned retail stores and an Internet Website. Recent financial information for East Point is provided below (all numbers in millions).

Year 3 Year 2
Net income $150,500 $77,500
Interest expense 3,100 11,600
Year 3 Year 2 Year 1
Total assets $1,640,000 $1,560,000 $1,410,000
Total stockholders' equity 1,160,344 1,137,366 382,242

a. Determine the return on total assets for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place.

Year 3 fill in the blank 1 %
Year 2 fill in the blank 2 %

b. Determine the return on stockholders' equity for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place.

Year 3 fill in the blank 3 %
Year 2 fill in the blank 4 %

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