Profitability Ratios East Point Retail, Inc., sells apparel through company-owned retail stores. Financial information for East Point follows (in thousands): Fiscal Year 3 Fiscal Year 2 Net income Interest expense Fiscal Year 3 $144,900 Fiscal Year 2 3,000 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $1,994,704 $1,897,402 $1,677,598 Total stockholders' equity (at end of fiscal year) 1,037,937 1,017,383 737,911 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 your answers to one decimal place. 7.4 X % % $74,600 11,200 b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 3 Fiscal Year 2 % %

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Profitability Ratios
East Point Retail, Inc., sells apparel through company-owned retail stores. Financial information for East Point follows (in thousands):
Fiscal Year 3 Fiscal Year 2
Net income
Interest expense
Fiscal Year 3
$144,900
3,000
Total assets (at end of fiscal year)
$1,897,402
$1,677,598
Total stockholders' equity (at end of fiscal year)
1,017,383
737,911
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.
Fiscal Year 2
a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round your answers to one decimal place.
Fiscal Year 2
$74,600
11,200
7.4 X %
%
Fiscal Year 3 Fiscal Year 2 Fiscal Year 1
%
b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round your answers to one decimal place.
Fiscal Year 3
%
$1,994,704
1,037,937
Transcribed Image Text:Profitability Ratios East Point Retail, Inc., sells apparel through company-owned retail stores. Financial information for East Point follows (in thousands): Fiscal Year 3 Fiscal Year 2 Net income Interest expense Fiscal Year 3 $144,900 3,000 Total assets (at end of fiscal year) $1,897,402 $1,677,598 Total stockholders' equity (at end of fiscal year) 1,017,383 737,911 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. Fiscal Year 2 a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 2 $74,600 11,200 7.4 X % % Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 % b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 3 % $1,994,704 1,037,937
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