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    Paris Perfume Company Managerial Accounting

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    The following information is provided in the 2011 annual report to shareholders of

    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
    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.

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    Solution Summary

    This file contains a fully formatted MS Excel spreadsheet which illustrates in detail, the necessary calculations to complete the balance sheet, income statement, and return on asset ratios for the Paris-Perfume.com company.