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
Uploaded: 2022-11-29T14:11:17.000Z
Channel: Bartleby
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