East Point, Inc., sells merchandise through company-owned retail stores and an Internet Website. Recent financial information...

 

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East Point, Inc., sells merchandise through company-owned retail stores and an Internet Website. Recent financial information for East Point is provided below (all numbers in millions). Year 3 Year 2 Net income $164,500 $84,700 Interest expense 3,400 12,700 Year 3 Year 2 Year 1 Total assets $1,593,496 $1.515,764 $1,348,942 Total stockholders' equity 1.130,238 1,107,858 352,486 a. Determine the return on total assets for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place. Year 3 19.4 % Year 2 b. Determine the return on stockholders' equity for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place. Year 3 Year 2 C. For East Point, the return on total assets exceeds the return on stockholders' equity due to the positive - use of leverage. East Point, Inc., sells merchandise through company-owned retail stores and an Internet Website. Recent financial information for East Point is provided below (all numbers in millions). Year 3 Year 2 Net income $164,500 $84,700 Interest expense 3,400 12,700 Year 3 Year 2 Year 1 Total assets $1,593,496 $1.515,764 $1,348,942 Total stockholders' equity 1.130,238 1,107,858 352,486 a. Determine the return on total assets for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place. Year 3 19.4 % Year 2 b. Determine the return on stockholders' equity for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place. Year 3 Year 2 C. For East Point, the return on total assets exceeds the return on stockholders' equity due to the positive - use of leverage.

Answer rating: 100% (QA)

East pointInc a Computation of Return on Assets ROA ROA Operating income Average of Tota... View the full answer