Please exaplain why if possible...thank you :)

Part 8(14 points): Ratio Analysis RATIOS The GAP (GPS) American Eagle Outfitters (AEO) As of January 31, Industry Average* 2009 DUPONT ANALYSIS OF ROE Return on sales (ROS Asset turnover Return on assets ROA) Financial leverage Return on equity 4.20% 1.80 8.1% 2.00 15.0% 6.66% 1.92 12.8% 1.72 22.0% 6.00% 1.52 9.1% 1.39 12.7% (ROE) SOLVENCY Debt ratio Free cash flow 42% $738 50% 28% (45) Xxxxx Average is not available Industry: Apparel Stores Industry averages from moneycentral msn.com Refer to the ratio information above to answer questions 44-48. Circle the BEST response. higher financial risk. use of debt), is used. 44. Compared to the industry average, (GPS/AEO / both / neither) are at 45. For AEO, the primary driver of ROA is (Asset Turnover/ROS/ROE 46. which indicates a (cash /accrual /high volume /high margin) strategy 47. For AEO, the primary driver of ROE is 48. The most profitable company is (GPS/AEO). How can you tell? (profitability / the use of debt/ assets /cash flow). 49. The most comprehensive measure of profitability is the