$ Q.3 35 Points Midwest Tours Income Statement (2020) Sales Cost of goods sold Gross profit Selling & administrative expenses Operating profit Interest expense Income before tax Tax expense Net income 2,500,000 1,260.000 1.240.000 700,000 540,000 160,000 380,000 152.000 228,000 $ Balance Sheet 2009 2008 $ $ Cash Accounts receivable Inventory Total current assets Fixed assets Total assets 60,000 500,000 300,000 860,000 2,180,000 3,040,000 50,000 450,000 270,000 770,000 2,000,000 2,770,000 $ $ $ $ $ $ Accounts Payable Bank loan Total current liabilities Bond payable Total liabilities Common stock (130,000 shares) Retained earnings Total liabilities & equity 200,000 $ 460,000 660,000 $ 860,000 1,520,000 120,000 $ 1,400,000 3,040,000 $ 170,000 440,000 610.000 860,000 1,470,000 120.000 1,300,000 2,890,000 $ $ $ Note: The common shares are trading in the stock market for $36 each. Refer to the financial statements of Midwest Tours. The firm's P/E ratio for 2020 is 20.53 36.63 5.21. 15.00