Fiscal Year 3Fiscal Year 2Fiscal Year 1 Total assets (at end of fiscal year)$4,183,618 $3,979,540 $3,520,460
Total stockholders' equity (at end of fiscal year)1,104,460 1,082,590 804,156
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 to one decimal place.

Fiscal Year 3fill in the blank 1
11.1
%
Fiscal Year 2fill in the blank 2
6.2
%
b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place.

Fiscal Year 3fill in the blank 3
2.7
%
Fiscal Year 2fill in the blank 4
9
%
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
compared to the industry average. The return on total assets for East Point was
less
than the industry average. The return on stockholders’ equity was
less
than the industry average. These relationships suggest that East Point has
less
leverage than the industry, on average.

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