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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 43
Profitability ratios
Ralph Lauren Corporation sells apparel through company-owned retail stores. Recent financial information for Ralph Lauren follows (in thousands):
Assume the apparel industry average return 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 return on total assets for Ralph Lauren for fiscal Years 2 and 3. (Round percentages to one decimal place.)
B. Determine the return on stockholders' for Ralph Lauren for fiscal Years 2 and 3. (Round percentages to one decimal place.)
C. Evaluate the two-year trend for the profitability ratios determined in (A) and (B).
D. Evaluate Ralph Lauren' performance relative to the industry.
Ralph Lauren Corporation sells apparel through company-owned retail stores. Recent financial information for Ralph Lauren follows (in thousands):
Assume the apparel industry average return 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 return on total assets for Ralph Lauren for fiscal Years 2 and 3. (Round percentages to one decimal place.)
B. Determine the return on stockholders' for Ralph Lauren for fiscal Years 2 and 3. (Round percentages to one decimal place.)
C. Evaluate the two-year trend for the profitability ratios determined in (A) and (B).
D. Evaluate Ralph Lauren' performance relative to the industry.
Explanation
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Profitability analysis
Profitability ana...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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