Ralph Lauren Corp. sells mens apparel through company-owned retail stores. Recent financial information for Ralph Lauren is
Question:
Ralph Lauren Corp. sells men’s apparel through company-owned retail stores. Recent financial information for Ralph Lauren is provided below (all numbers in thousands).
Assume the apparel industry average rate earned on total assets is 8.0%, and the average rate earned on stockholders’ equity is 10.0% for the year ended April 2, Year 3.
a. Determine the rate earned on total assets for Ralph Lauren for fiscal years 2 and 3. Round to one digit after the decimal place.
b. Determine the rate earned on stockholders’ equity for Ralph Lauren for fiscal years 2 and 3. Round to one decimal place.
c. Evaluate the two-year trend for the profitability ratios determined in (a) and (b).
d. Evaluate Ralph Lauren’s profit performance relative to theindustry.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac