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 3Fiscal Year 2Net income$134,300$69,200Interest expense2,70010,300Fiscal Year 3Fiscal Year 2Fiscal Year 1Total assets (at end of fiscal year)$3,600,642$3,425,000$2,935,000Total stockholders' equity (at end of fiscal year)1,085,1441.063,656781,678Assume 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 3Fiscal Year 2b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place.Fiscal Year 3Fiscal Year 20%c. The return on stockholders' equity is* the return on total assets due to theuse of leverage.d. During fiscal Year 3, East Point's results were* compared to the industry average. The return on total assets for East Point wasthan the industry average. Thereturn on stockholders' equity was* than the industry average. These relationships suggest that East Point has* leverage than the industry, on average. 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 3Fiscal Year 2Net income$134,300$69,200Interest expense2,70010,300Fiscal Year 3Fiscal Year 2Fiscal Year 1Total assets (at end of fiscal year)$3,600,642$3,425,000$2,935,000Total stockholders' equity (at end of fiscal year)1,085,1441.063,656781,678Assume 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 3Fiscal Year 2b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place.Fiscal Year 3Fiscal Year 20%c. The return on stockholders' equity is* the return on total assets due to theuse of leverage.d. During fiscal Year 3, East Point's results were* compared to the industry average. The return on total assets for East Point wasthan the industry average. Thereturn on stockholders' equity was* than the industry average. These relationships suggest that East Point has* leverage than the industry, on average.

Name: East Point Retail, Inc., sells professional women's apparel through c
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Description: 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 3Fiscal Year 2Net income$134,300$69,200Interest exp

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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 $134,300 $69,200 Interest expense 2,700 10,300 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $3,600,642 $3,425,000 $2,935,000 Total stockholders' equity (at end of fiscal year) 1,085,144 1,063,656 781,678 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 * the return on total assets due to the use of leverage.

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 $134,300 $69,200 Interest expense 2,700 10,300 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $3,600,642 $3,425,000 $2,935,000 Total stockholders' equity (at end of fiscal year) 1,085,144 1,063,656 781,678 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 * the return on total assets due to the use of leverage.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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