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Interpreting Financial Reports: Comparison of Profitability Two of the largest chains of clothing stores in the United States are The Gap, Inc., and...

Interpreting Financial Reports: Comparison of Profitability

Two of the largest chains of clothing stores in the United States are The Gap, Inc., and Abercrombie & Fitch Co. In fiscal 2011, Gap had net income of $833 million, and Abercrombie & Fitch Co. had net income of $128 million. It is difficult to judge from these figures alone which company is more profitable because they do not take into account the relative sales, sizes, and investments of the companies. Data (in millions) needed to complete financial analysis of the two companies follow:

Gap:

net sales: $14,549

Beginning Total Assets: 7,065

Ending total assets 7,422

Beginning total liabilities 2,985

Ending total liabilities 4,667

Beginning stockholders equity 4,080

Ending stockholders equity 2,755

Abercrombie & Fitch

Net sales 4,158

Beginning Total assets: 2,941

Ending total assets: 3,048

Beginning total liabilities: 1,051

Ending total liabilities: 1,186

Beginning stockholders equity: 1,891

Ending stockholders equity: 1,862

I can't seem to figure out the following for each company!

Return to assets %

Debt to equity ration %

Return on equity %

Can someone show me the formula along with the precent answer so I can visual see what I'm doing wrongjQuery20005214936218817429_1518113753815?

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