Jos. A. Bank Clothiers, Inc., operated 506 retail clothing stores in 42 states and the District of

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Jos. A. Bank Clothiers, Inc., operated 506 retail clothing stores in 42 states and the District of Columbia as of January 31, 2011. The Men’s Wearhouse, Inc., operated 1,075 men’s clothing stores in the United States, and 117 in Canada, as of January 31, 2011. These stores do business under the names Men’s Wearhouse, K&G Fashion Superstores, and Moores Clothing for Men. The following information was taken from these companies’ January 31, 2011 annual reports. All dollar amounts are in thousands.


Jos. A. Bank Clothiers, Inc., operated 506 retail clothing stores


Required
a. Calculate the EBIT for each company.
b. Calculate each company’s debt to assets ratio, current ratio, and the times interest earned ratio.
c. Calculate each company’s return on assets ratio using EBIT instead of net earnings. Calculate each company’s return on equity ratio using net earnings.
d. Men’s Wearhouse reported interest expense of $1,141, before taxes. What was its after-tax interest expense indollars?

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Fundamental financial accounting concepts

ISBN: 978-0078025365

8th edition

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

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