Lillian Ruth Artworks, Inc
Balance Sheet
As of 12/31/--
Cash	131250	Account Payable	381250
Account Receivable	458750	Accruals	50000
Inventory	262500	Notes Payable	206250
Current Assets	852500	Current Liabilities	637500
Gross Fixed Assets	650000	Bonds	150,000
Accumulated Depreciation	(100000)	Debentures	100000
Net Fixed Asset	550000	Long Term Debt	250000
		Total Debt	887500
		Preferred Stock	50000
		Common Stock	200000
		Retained Earning	265000
		Total Equity	515000
Total Assets	1402500	Total Debt and Equity	1402500

Lillian Ruth Artworks, Inc
Income Statement
Period Ended 12/31/--
Net Sales	1181001
Cost of goods sold	767650
Gross Profit	413351
Operating Expenses	301746
Net Operating Profit	111605
Interest Expense	40177
Earning Before Tax	71428
Tax (0.21)	15000
Net Income	56428

1. Where appropriate use a 360 day year

2. Common shares outstanding: 25,000

3. Preferred shares outstanding: 5 ,000

4. Preferred Dividends: $5,000

5. Common Dividends: $9,000

6. Common Stock Market Price Per Share: $33.00

7. Earnings Per Share: $ 2.06 Per Share

Lillian Ruth's Earning Power ratio can be determined as

A. 4.23% B. 3.57% C. 5.23% D. 7.96%