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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
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 $161,800 Interest expense 3,300 $83,300 12,500 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $2.599,777 Total stockholders' equity (at end of fiscal year) 662,496 $3,021,919 1,192,832 $2,874,509 1,169,212 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 facal Years 2 and 3. Bound to one decimal place Fiscal Year 3 Fiscal Year 2 6. The return on stockholders' equity is d. During fiscal Year 3, East Points results were, average. The return an stockholders' equity was) industry, on average the return on total assets due to the compared to the industry average The retum an total assets for East Pens than the industry average. These relationships suggest that East Pt her, than the industry verge than the
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