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 $132.600 $68,300 Interest expense 2,700 10,200 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $2,009,892 $1,911,848 $1,739,314 Total stockholders' equity (at end of fiscal year) 1,071,408 1.050,192 771,142 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 3. 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 Fast Point for fiscal Years 2 and 3. Round to one decimal place Fiscal Year 3 96 Fiscal Year 2 Profitability Ratios The following selected data were taken from the financial statements of Vidahil Inc. for December 31, 2007, 2006, and 2075: December 31 2017 2016 2015 Total assets $225,000 $212,000 $189,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 3% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 84,385 61,575 48,000 The 2017 net income was $23,290, and the 2016 net income was $14,055. No dividends on common stock were declared between 2015 and 2017 Preferred dividends were declared and paid in full in 2016 and 2017 a. Determine the return on total assets, the retum on tockholde equity, and the return on common stockholders equity for the years 2046 and 2017. When required, round to one decimal place, 2017 2016 X% X Return on total assets Retum on stockholders' equity X 90 X X% X 90 Return on common stockholders equity b. The profitability ratios indicate that the company's profitability has moved Since the return on assets is less than the return on Year Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Previous Year Accounts payable $310,000 $262,000 Current maturities of serial bonds payable 400,000 400,000 Serial bonds payable, 10% 1,930,000 2,330,000 Common stock, $1 par value 90,000 110,000 Pald-in capital in excess of par 970,000 970,000 Retained earnings 3,340,000 2,660,000 The income before income tax expense was $652,400 and $570,900 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders equity at the end of each year. Round to one decimal place Current year 0.6 Previous year 0.8 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year 4.4 X Previous year 3.5 X act chama amed