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Please refer to the picture below: Profitability Ratios East Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East
Please refer to the picture below:
Profitability Ratios 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 $145,800 $75,100 Interest expense 3,000 11,200 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 $2,460,000 $2,340,000 $2,085,642 Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) 1,217,009 1,192,909 864,625 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 % 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 %Step by Step Solution
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