Net income Interest expense Fiscal Year 3 $154,400 3,200 Fiscal Year 2 Fiscal Year 1 $2,447,576 $2,328,182 $2,024,198 1,299,534 1,273,800 934,534 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 ende Year 3. Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) 6.5 % Fiscal Year 2 $79,500 11,900 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 3.7 % 12.0% 7.2 % Fiscal Year 3 use of leverage. c. The return on stockholders' equity is less than d. During fiscal Year 3, East Point's results were compared to the industry average. The return on total assets for East Poi than the industry average. The return on stockholders' equity was than the industry average. These relationships suggest that East Point has leverage than the industry, on average. the return on total assets due to the

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 end Year 3. a. Determine the return on total assets for East Point for fiscal Years 2 and 3 . Round to one decimal place. 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 c. The return on stockholders' equity is the return on total assets due to the use of leverage. d. During fiscal Year 3, East Point's results were compared to the industry average. The return on total assets for East P0 than the industry average. The return on stockholders' equity was than the industry average. These relationships suggest that East Point has leverage than the industry, on average