Profitability RatiosEast 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 2 Net income$144,600 $74,500 Interest expense3,000 11,100 Fiscal Year 3Fiscal Year 2Fiscal Year 1Total assets (at end of fiscal year)$3,981,316 $3,787,106 $3,346,228 Total stockholders' equity (at end of fiscal year)1,177,790 1,154,468 859,046 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 3fill in the blank 1 %Fiscal Year 2fill in the blank 2 %b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place.Fiscal Year 3fill in the blank 3 %Fiscal Year 2fill in the blank 4 %

Name: Profitability RatiosEast Point Retail, Inc., sells professional women'
Uploaded: 2022-11-29T14:11:17.000Z
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Description: Profitability RatiosEast 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 2 Net income$144,6

The ratio of a company's earnings before interest and taxes (EBIT) to its total net assets is known…

Answered: ofitability Ratios East Point Retail,…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 18E

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Profitability Ratios

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	$144,600		$74,500
Interest expense	3,000		11,100

	Fiscal Year 3	Fiscal Year 2	Fiscal Year 1
Total assets (at end of fiscal year)	$3,981,316		$3,787,106	$3,346,228
Total stockholders' equity (at end of fiscal year)	1,177,790		1,154,468	859,046

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	fill in the blank 1 %
Fiscal Year 2	fill in the blank 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	fill in the blank 3 %
Fiscal Year 2	fill in the blank 4 %

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