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.