The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows:

Required:
Compute the price-earnings ratio. (Note: Round the answer to two decimal places.)

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Somerville Company Income Statement For the Year Ended December 31, 20X2 Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Operating income Less: Interest expense Income before taxes Less: Income taxes (40%)* Net income *Includes both state and federal taxes. Amount $8,281,989 5,383,293 $ 2,898,696 1,323,368 $ 1,575,328 50,000 $ 1,525,328 610,131 $ 915,197 Percent 100.0% 65.0 35.0 16.0 19.0 0.6 18.4 7.4 11.0