Assets Pharoah Medical Comparative Balance Sheet As of December 31 2020 2019 Current assets Cash $386,000 $417,400 Accounts receivable, net 1,057,000 776,400 Inventory 750,000 681,050 Other current assets 381,350 247,050 Total current assets 2,574,350 2,121,900 Property, plant, & equipment, net 8,641,505 8,440,160 Total assets $11,215,855 $10,562,060 Liabilities and Stockholders' Equity Current liabilities $3,155,000 $2,846,100 Long-term debt 3,702,700 3,892,650 Total liabilities 6,857,700 6,738,750 Preferred stock, $5 par value 58,950 59,000 Common stock, $0.25 par value 104,650 103,900 Retained earnings 4,194,555 3,660,410 Total stockholders' equity 4,358,155 3,823,310 Total liabilities and stockholders' equity $11,215,855 $10,562,060 Pharoah Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2020 2019 Sales revenue (all on account) $10,177,300 $9,613,900 Cost of goods sold 5,612,400 5,298,800 Gross profit 4,564,900 4,315,100 Operating expenses 2,840,200 2,634,150 Net operating income 1,724,700 1,680,950 Interest expense 300,350 308,650 Net income before taxes 1,424,350 1,372,300 Income taxes (30%) 427,305 411,690 Net income $997,045 $960,610 Dividends paid Preferred dividends 29,500 29,450 Common dividends 433,400 413,050 Total dividends paid 462,900 442,500 Net income retained 534,145 518,110 Retained earnings, beginning of year 3,660,410 3,142,300 Retained earnings, end of year $4,194,555 $3,660,410 (b) Calculate the price/earnings ratio (market price of $48 at year-end) for 2020. (Round answer to 1 decimal place, e.g. 2.5.) Price/earnings ratio eTextbook and Media Save for Later Attempts: 0 of 3 used Submit