Refer to the financial statements of Burnaby Mountain Trading Company. The firm's asset turnover ratio for 2008 is _________. Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged. A. 1.30 B. 1.50 C. 1.69 D. 2.83

Refer to the financial statements of Burnaby Mountain Trading Company. The firm's P/E ratio for 2008 is _________.

A. 2.80 B. 3.60 C. 6.00 D. 11.11

Burnaby Mountain Trading Company Income Statement (2008) Sales Cost of goods sold Gross Profit Selling and administrative expenses Operating profit Interest expense Income before tax Tax expense Net income $7,000,000 5,000,000 2,000,000 1,700,000 300,000 50.000 250,000 100.000 150,000 Balance Sheet Cash Accounts receivable Inventory Total Current assets Fixed assets Total assets 2008 $ 90,000 810,000 800,000 1,700,000 2.600,000 4,300,000 2007 $ 80,000 800,000 720,000 1,600,000 2,400,000 4,000,000 Accounts payable Bank loan Total current liabilities Bonds payable Total liabilities Common stock (20,000 shares) Retained earnings Total liabilities and shareholders' eq. 500,000 100,000 600,000 400,000 1,000,000 500,000 2.800.000 4,300,000 400,000 100.000 500,000 300.000 800,000 500,000 2.700.000 4,000,000 Burnaby Mountain Trading Company Income Statement (2008) Sales Cost of goods sold Gross Profit Selling and administrative expenses Operating profit Interest expense Income before tax Tax expense Net income $7,000,000 5,000,000 2,000,000 1,700,000 300,000 50.000 250,000 100.000 150,000 Balance Sheet Cash Accounts receivable Inventory Total Current assets Fixed assets Total assets 2008 $ 90,000 810,000 800,000 1,700,000 2.600,000 4,300,000 2007 $ 80,000 800,000 720,000 1,600,000 2,400,000 4,000,000 Accounts payable Bank loan Total current liabilities Bonds payable Total liabilities Common stock (20,000 shares) Retained earnings Total liabilities and shareholders' eq. 500,000 100,000 600,000 400,000 1,000,000 500,000 2.800.000 4,300,000 400,000 100.000 500,000 300.000 800,000 500,000 2.700.000 4,000,000