Profitability Ratios
East Point, Inc., sells merchandise through company-owned retail stores and Internet Web sites. Recent financial information for East Point is provided below (all numbers in millions).
Fiscal Year Ended | ||||||
Year 3 | Year 2 | |||||
Net income | $136,200 | $70,100 | ||||
Interest expense | 2,800 | 10,500 | ||||
Year 3 | Year 2 | Year 1 | ||||
---|---|---|---|---|---|---|
Total assets | $1,272,098 | $1,210,044 | $1,060,378 | |||
Total stockholders' equity | 876,191 | 858,841 | 299,837 |
a. Determine the rate earned on total assets for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place.
Year 3 | % |
Year 2 | % |
b. Determine the rate earned 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 | % |
Return on assets = (Net income+Interest) /Average operating assets
Year 3 (136,200+2,800)+ [(1272098+1210044/2)] |
11.2% |
Year 2 (70,100+10500)+[(1210044+1060378)/2] |
7.1% |
Rate on stockholders equity = Net income / Average stockholders equity
Year 3 136,200/[(876191+858841/2) |
15.7% |
Year 2 70100 / (858841+299837)/2 |
12.1% |
Comment if you face any issues
Profitability Ratios East Point, Inc., sells merchandise through company-owned retail stores and Internet Web sites. Recent...
Profitability Ratios East Point, Inc., sells merchandise through company-owned retail stores and Internet Web sites. Recent financial information for East Point is provided below (all numbers in millions). Fiscal Year Ended Year 3 Year 2 Net income $165,800 3,400 $85,300 12,800 Interest expense Year 3 Year 2 Year 1 $1,649,700 Total assets Total stockholders' equity $1,734,300 1,213,463 $1,464,586 404,957 1,189,435 a. Determine the rate earned on total assets for East Point for the fiscal Years 2 and 3. Round your...
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 $145,300 $74,800 Interest expense 3,000 11,200 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets $1,583,412 $1,506,172 $1,360,494 Total stockholders' equity 1,254,299 1,229,461 907,681 Assume the apparel industry average rate earned on total assets is 5.0%, and the average rate earned on stockholders'...
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 $132,100 $68,000 Interest expense 2,700 10,200 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $1,919,028 $1,825,416 $1,650,140 Total stockholders' equity (at end of fiscal year) 920,144 901,924 661,294 Assume the apparel industry average return on total assets...
eBook Calculator Print Item 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 $145,300 $74,800 Interest expense 3,000 11,200 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets $1,583,412 $1,506,172 $1,360,494 Total stockholders' equity 1,254,299 1,229,461 907,681 Assume the apparel industry average rate earned on total assets is 5.0%, and the average...
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 $77,400 Net income $150,400 Interest expense 3,100 11,600 Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) Fiscal Year 3 $2,760,307 1,133,612 Fiscal Year 2 $2,625,657 1,111,164 Fiscal Year 1 $2,318,787 823,836 Assume the apparel industry average return on total assets is 8.0%,...
7 on d Internet web in millions) % E9-18 Profitability metrics Macy's, Inc. (M), sells merchandise through company-owned retail stores and Inter site. Recent financial information for Macy's is provided be vided below (all numbers in milli Year 3 Year 2 Net income $1,526 $1,486 Interest expense 864 804 p Total assets Total stockholders' equity Year 3 $21,461 5,378 Year 2 $21,620 6,249 Year 1 $20,991 ,051 6 Assume the apparel industry's average return on total assets is 8.2%, and...
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 3Year 2Net income$142,200$73,300Interest expense2,90010,900Year 3Year 2Year 1Total assets$1,443,956$1,373,520$1,217,250Total stockholders' equity1,113,3491,091,303241,425 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 3fill in the blank 1 %Year 2fill in the blank 2 %b. Determine the return on stockholders' equity for East Point for the fiscal Years 2 and 3. Round...
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$153,100 $78,800 Interest expense3,100 11,800 Fiscal Year 3Fiscal Year 2Fiscal Year 1Total assets (at end of fiscal year)$3,905,000 $3,714,512 $3,254,718 Total stockholders' equity (at end of fiscal year)1,333,026 1,306,630 944,798 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...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $4,800,000 $4,400,000 $4,000,000 Notes payable (8% interest) 2,250,000 2,250,000 2,250,000 Common stock 250,000 250,000 250,000 Preferred 4% stock, $100 par (no change during year) 500,000 500,000 500,000 Retained earnings 1,574,000 1,222,000 750,000 The 2017 net income was $372,000, and the 2016 net income was $492,000. No dividends on common stock were...
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 2015 Total assets $244,000 $220,000 $196,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 6% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 83,360 59,840 48,000 The 2017 net income was $24,480, and the 2016 net income was $12,800. No dividends on common stock were...