3. Ralph Lauren Corporation sells apparel through company-owned stores. Recent financialinformation for Ralph Lauren is as follows:Net IncomeInterest ExpenseTotal Assets (at end of fiscal year)Total Stockholders (at end of fiscal year)Fiscal Year 3$567,60018,300Fiscal Year 3$4,981,0003,304,700Fiscal Year 2$479,50022,200Fiscal Year 2$4,648,9003,116,600Fiscal Year 1$4,356,5002,735,000Assume that the apparel industry average return on total assets is 8.0% and the averagereturn on stockholders' equity is 10.0% for the year ended April 2, Year 3.Required:a. Determine the return on total assets for Ralph Lauren for fiscal year 2 and 3.b. Determine the return on stockholders' equity for Ralph Lauren for fiscal Years 2 and 3.c. Evaluate the two year trend for the profitability ratios determined in (a) and (b)d. Evaluate Ralph Lauren's profit performance relative to the industry.

return on total assets = EBITAverage Total Asset EBIT (Earnings before interest and tax ) = net…

3. Ralph Lauren Corporation sells apparel through company-owned stores. Recent financial information for Ralph Lauren is as follows: Net Income Interest Expense Total Assets (at end of fiscal year) Total Stockholders (at end of fiscal year) Fiscal Year 3 $567,600 18,300 Fiscal Year 3 $4,981,000 3,304,700 Fiscal Year 2 $479,500 22,200 Fiscal Year 2 $4,648,900 3,116,600 Fiscal Year 1 $4,356,500 2,735,000

3. Ralph Lauren Corporation sells apparel through company-owned stores. Recent financial information for Ralph Lauren is as follows: Net Income Interest Expense Total Assets (at end of fiscal year) Total Stockholders (at end of fiscal year) Fiscal Year 3 $567,600 18,300 Fiscal Year 3 $4,981,000 3,304,700 Fiscal Year 2 $479,500 22,200 Fiscal Year 2 $4,648,900 3,116,600 Fiscal Year 1 $4,356,500 2,735,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.17E: Profitability metrics The following selected data were taken from the financial statements of The...

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