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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
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 thousa Fiscal Year 3 Fiscal Year 2 Net income $130,700 $67,300 Interest expense 2,700 10,100 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 $2,071,742 $1,970,682 $1,715,032 Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) 923,126 904,846 660,270 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 II % Fiscal Year 2 %
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