Assets

Cash ................................................................................................ $ 25,000

Short-term investments ................................................................... 20,000

Accounts receivable (net) ............................................................... 50,000

Inventory ......................................................................................... 140,000

Property, plant and equipment (net) ................................................ 170,000

Total assets ............................................................................... $405,000

Liabilities and stockholders' equity

Accounts payable ............................................................................. $ 25,000

Short-term notes payable ................................................................. 40,000

Bonds payable ................................................................................. 75,000

Common stock ................................................................................. 160,000

Retained earnings ............................................................................ 105,000

Total liabilities and stockholders' equity..................................... $405,000

ELCAMINO COMPANY

Income Statement

For the Year Ended December 31, 2017

Net sales (all on credit) ..................................................................... $360,000

Cost of goods sold ............................................................................ 184,000

Gross profit ....................................................................................... 176,000

Expenses

Interest expense ......................................................................... $11,000

Selling expenses ........................................................................ 30,000

Administrative expenses ............................................................ 20,000

Total expenses ..................................................................... 61,000

Income before income taxes ............................................................ 115,000

Income tax expense ......................................................................... 35,000

Net income ........................................................................................ $ 80,000

Additional information:

a. Cash dividends of $50,000 were declared and paid on common stock in 2017.

b. Weighted-average number of shares of common stock outstanding during 2017 was 50,000 shares.

c. Market price of common stock on December 31, 2017, was $16 per share.

d. Net cash provided by operating activities for 2017 was $70,000.

The Price-Earnings ratio is (round to two decimals):

Select one:

a. 8.33

b. None of the above

c. 16.00

d. 10.00