Net income Interest expense FISC Year 3 Fiscal Year 2 $138,400 $71,300 2,800 10,600 Total assets...

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Net income Interest expense FISC Year 3 Fiscal Year 2 $138,400 $71,300 2,800 10,600 Total assets (at end of fiscal year) Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total stockholders' equity (at end of fiscal year) $3,146,304 1,058,970 $2,992,826 1,038,000 $2,655,450 767,064 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 your answers to one decimal place. Fiscal Year 3 4.6 % Fiscal Year 2 2.9 % b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 3 13.2 % Fiscal Year 2 % c. The return on stockholders' equity is greater than the return on total assets due to the positive use of leverage. d. During fiscal Year 3, East Point's results were weak industry average. The return on stockholders' equity was less the industry, on average. compared to the industry average. The return on total assets for East Point was less than the industry average. These relationships suggest that East Point has less than the leverage than Net income Interest expense FISC Year 3 Fiscal Year 2 $138,400 $71,300 2,800 10,600 Total assets (at end of fiscal year) Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total stockholders' equity (at end of fiscal year) $3,146,304 1,058,970 $2,992,826 1,038,000 $2,655,450 767,064 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 your answers to one decimal place. Fiscal Year 3 4.6 % Fiscal Year 2 2.9 % b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 3 13.2 % Fiscal Year 2 % c. The return on stockholders' equity is greater than the return on total assets due to the positive use of leverage. d. During fiscal Year 3, East Point's results were weak industry average. The return on stockholders' equity was less the industry, on average. compared to the industry average. The return on total assets for East Point was less than the industry average. These relationships suggest that East Point has less than the leverage than

Answer rating: 100% (QA)

a To calculate the return on total assets ROA you divide the net income by the total assets For fisc... View the full answer