Planet Express Corporation has issued 1,000,000 shares and these shares are currently trading at $100. Calculate, interpret, and fully explain the ratios in (a) (d). Analyze how the business is performing according to these ratios.

a. Equity multiplier

b. Receivables turnover

c. Return on equity

d. Price-earnings ratio

Planet Express Corporation Balance Sheet December 31, 2019 Cash $200,000 Accounts payable $400,000 Accounts receivable 900,000 Notes payable 200,000 Inventory 600,000 Current liabilities $600,000 Current assets $1,700,000 Long-term debt 1,400,000 Total liabilities $2,000,000 Tangible net fixed assets $5,300,000 Intangible net fixed assets 500,000 Common stock $1,500,000 Accumulated retained earnings 4,000,000 Total liabilities & Total assets $7,500,000 owners' equity $7,500,000 Income Statement Jan 1 - Dec 31, 2019 Sales $1,000,000 Costs 600,000 Depreciation | 100,000 EBIT $300,000 Interest 40,000 Taxable income $260,000 Taxes (21%) 54,600 Net income $205,400 10