DuPont Analysis Last Year, PJ's Ice Cream Parlors, Inc

question 28

Multiple Choice

DuPont Analysis Last year, PJ's Ice Cream Parlors, Inc. reported an ROE = 12%. The firm's debt ratio was 40%, sales were $25 million, and the capital intensity ratio was 0.75 times. What is the net income for PJ's last year?

• A) $1.35m
• B) $2.40m
• C) $3.00m
• D) $18.75m

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Definitions:

Proteoglycan

Large molecules found in the extracellular matrix of connective tissues, consisting of a protein core and glycosaminoglycan chains; important for tissue hydration and elasticity.

Traps Water

Refers to materials or structures that are capable of retaining water or moisture.

Cartilage

A firm, flexible connective tissue found in various parts of the body, such as joints, ears, and nose, providing support and allowing for smooth movement.

Chondrocytes

Specialized cells found within cartilage that help maintain its structure and function.