Profitability ratios Ralph Lauren Corporation (RL) sells apparel through company-owned retail stores. Financial information for Ralph Lauren follows (in thousands): Fiscal Year 3 Fiscal Year 2 Net income $600,100 Interest expense 54,000 $(121,100) 48,500 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) $7,724,700 2,536,000 $7,279,900 2,693,300 $7,887,500 2,604,400 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 Ralph Lauren for fiscal Years 2 and 3. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your answers to one decimal place. Fiscal Year 3 Fiscal Year 2 % % b. Determine the return on stockholders' equity for Ralph Lauren for fiscal Years 2 and 3. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your answers to one decimal place. Fiscal Year 3 Fiscal Year 2 % % c. The return on stockholders' equity is the return on total assets due to the d. During fiscal Year 3, Ralph Lauren's results were Ralph Lauren was use of leverage. compared to the industry average. The return on total assets for than the industry average. The return on stockholders' equity was than the industry average. These relationships suggest that Ralph Lauren has leverage than the industry, on average.