Question
Ralph Lauren Corporation sells apparel through company-owned retail stores. Recent financial information for Ralph Lauren follows (in thousands): Fiscal Year 3 Fiscal Year 2 Net
Ralph Lauren Corporation sells apparel through company-owned retail stores. Recent financial information for Ralph Lauren follows (in thousands):
Fiscal Year 3 | Fiscal Year 2 | |||||
Net income (loss) | $162,800 | $(99,300) | ||||
Interest expense | 18,200 | 12,400 | ||||
Fiscal Year 3 | Fiscal Year 2 | Fiscal Year 1 | ||||
Total assets (at end of fiscal year) | $6,143,300 | $5,652,000 | $6,213,100 | |||
Total stockholders' equity (at end of fiscal year) | 3,457,400 | 3,299,600 | 3,743,500 |
Assume that the apparel industry average return on total assets is 11.4% and the average return on stockholders' equity is 26.4% for the year ended April 2, Year 3.
a. Determine the return on total assets for Ralph Lauren for fiscal Years 2 and 3. Round percentages to one decimal place. If required, use a minus sign to indicate a negative return on total assets.
Fiscal Year 3 | |
Fiscal Year 2 |
b. Determine the return on stockholders equity for Ralph Lauren for fiscal Years 2 and 3. Round percentages to one decimal place. If required, use a minus sign to indicate a negative return on stockholders' equity.
Fiscal Year 3 | |
Fiscal Year 2 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started