The
following information is provided in the 2011 annual report to shareholders of
paris-perfume.com:
December
31, 2011 December 31, 2010
Accounts
receivable ??? $100
million
Inventory $70
million $30
million
Other assets
??? $170
million
Total assets
???
$300
million
Total
liabilities ???
$100
million
Total
stockholders’ equity ??? $200
million
For the year
ended Dec. 31, 2011
Net sales ???
Cost of
goods sold ???
Net income $40 million
Return on
assets 10%
Receivables
turnover 8.0
Inventory
turnover 12.0
Asset
turnover 2.5
Return on
stockholders’ equity 20%
Profit
margin on sales 4%
Required:
Compute the missing amount in the paris-perfume.com financial statement information,
indicated by ??? in the table above.
TUTORIAL PREVIEW
(1.)
Return on Assets = Net Income/ Average Total Assets = 10 %
Average total assets = 40/10%
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