EX 17-18 Profitability ratios Ann Taylor Retail, Inc., sells professional womens apparel through company-owned retail stores. Recent financial information for Ann Taylor is provided below (all numbers in thousands). Fiscal Year Ended February 2, 2008 February 3, 2007 Net income $97,235 $142,982 Interest expense 2,172 2,230 February 2, 2008 February 3, 2007 January 28, 2006 Total assets $1,393,755 $1,568,503 $1,492,906 Total stockholders equity 839,484 1,049,911 1,034,482 Assume the apparel industry average rate earned on total assets is 5.0%, and the average rate earned on stockholders equity is 8.0% for the year ended February 2, 2008 (fiscal year 2007). a. Determine the rate earned on total assets for Ann Taylor for the fiscal years ended February 2, 2008, and February 3, 2007. Round to one digit after the decimal place. b. Determine the rate earned on stockholders equity for Ann Taylor for the fiscal years ended February 2, 2008, and February 3, 2007. Round to one decimal place. c. Evaluate the two-year trend for the profitability ratios determined in (a) and (b). d. Evaluate Ann Taylors profit performance relative to the industry.