11. The Apple Pie Company had net income of $47, 500 and earnings per share of 33.17 during 2010. On December 31, 2010, the stock had a market price of $18.50 per share. What is Apple Pie Company's price/earnings ratio? a. 25.7 c. 5.84 12. On December 31, 2010, Hamilton Inc. sold a used industrial crane tor $600,000 cash. The original cost of the crane was $5.0 million and its accunulated depreciation equaled $4.2 mil1ion on December 31, 2010: they had been using the straight-line depreciation method. The estinated residual value was zero and its useful life was 25 years. What is the gain or loss on the equipment on Decenber 31, 20102 a. $250,000 loss b. $400,000 gain C. $200,000 loss d. $200,000 gain 13. Failure to make a necessary adjusting entry tor acerued interest on a note payable would cause a. an understatement of liabilities and stockholders' equity b. net income to be overstated and assets to be understated c. net income to be understated and liabilities to be understated d. an overstatement of stockholders" equity nt of net income, an understatement of liabilities, and an overstatene 2009, Prism, Inc. borrowed $30,000 from Pirst Bank on a one year, 14. on July 1, 10% note Prism's account Interest is payable on June 30, 2010, the due date of the note le. ear ends December 31, 2009.Assuming no adjusting entries have the year, the journal entry required on the company's books to been made during record the interest accrued on December 31, 2009, would include a a. debit to Interest Expense for $1,500 credit to interest Expense for 1,500. c. credit to cash for $1,500 d. debit to Notes Payable for $1,500. 15. Which ratio reflects the stock nacket 's assessment of a company's future performance? a. price/earnings ratio. b. dividend yield ratio. c. book value per share. d, cash coverage ratio