Last Year, PJ's Ice Cream Parlours, Inc

question 67

Multiple Choice

Last year, PJ's Ice Cream Parlours, Inc. reported an ROE = 12 percent. The firm's debt ratio was 40 percent, 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:

Closure

The psychological phenomenon of seeking resolution and clarity on an issue or event.

Organized Whole

A concept in Gestalt psychology that focuses on patterns and relationships between components to form a unified system.

Gestalt

A psychological approach emphasizing the perception of whole figures or patterns rather than the simple sum of parts, under the principle that "the whole is different than the sum of its parts."

Figure-Ground Relationship

A concept in visual perception where the viewer separates an object (the figure) from its surrounding area (the ground) to focus their attention and interpret images.