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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

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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 numbers in thousands). Net income) Interest expense Fiscal Year 3 Fiscal Year 2 $148,700 3,000 $76,600 11,400 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) $3,533,920 1,057,655 $3,361,534 1,036,711 $2,924,180 765,641 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 % % c. The return on stockholders' equity is d. During fiscal Year 3, East Point's results were the return on total assets due to the use of leverage than the industry average. The return on stockholders' equity was compared to the industry average. The return on total assets for East Point was than the industry average. These relationships nnect that East Doint has cane than the industron

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