Question-ann taylor retail

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Ann Taylor Retail, Inc., sells professional women'sapparel through company-owned retail stores. Recent financialinformation for Ann Taylor is provided below (all number inthousands):

                                               Year2                        Year 1

NetIncome                            81,872                        63,276

InterestExpense                    2,083                          3,641

End ofyear                            Year2                        Year1                        Year 0

Totalassets                             1,492,906                   1,327,338                   1,256,397

Total stockholders' equity     1,034,482                   926,744                      818,856

Assume the apparel industry average rate earned on total assetsis 8.2%, and the average rate earned on stockholders' equityis 16.7% for Year 1.

Determine the rate earned on total assets for AnnTaylor for Year 2 and Year 1. Round to one digit after thedecimal place.

Determine the rate earned on stockholders' equityfor Ann Taylor for Year 2 and Year 1. Round to one decimalplace

Evaluate the two-year trend for the profitabilityratios determined in (a) and (b).

Evaluate Ann Taylor's profit performance relativeto the industry.

Reference no: EM13257969

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