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Profitability Ratios East Point Retail, Inc. sells apparel through company-owned retail stores. Recent financial information for East Point follows (in thousands) Fiscal Year 3 Fiscal

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Profitability Ratios East Point Retail, Inc. sells apparel through company-owned retail stores. Recent financial information for East Point follows (in thousands) Fiscal Year 3 Fiscal Year 2 Net Income $138,800 $71,400 Interest expense 2,800 10.700 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $1,649,318 $1,568,864 $1,416,590 Total stockholders' equity (at end of fiscal year) 1,038,429 1,017,867 745,095 Assume the apparel Industry average return on total assets is 5.0% and the average return on stockholders' equity is 8.0% for the year ended February 2, Year) a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round percentages 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 percentages to one decimal place. Fiscal Year 3 % Fiscal Year 2 the return on total assets due to the use of leverage c. The return on stockholders' equity is compared to the industry average. These relationships suggest that East Points has d. During fiscal Year 3, East Point's results were leverage than the industry, on average

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