The balance sheet and income statement is shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

Based on the information in Table 1, the current ratio is:

Based on the information in Table 2, the net profit margin is:

What is the P/E ratio? What does a high P/E ratio indicate?

What is the return on equity? Assume that current retained earnings have not been added to the equity account.

Table 1 (millions of $) Pettijahn Inc. Balance Sheet Assets: Cash ad marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $1,554 9,660 13,440 24,654 $17,346 $42,000 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Common Stock Retained Earnings T. Liabilities equity $7,980 5,880 4,620 $18480 10,920 3,360 9,240 $42.000 Table 2 millions of S) Pettijohn Inc. Income Statement Other Information The common shares are trading in the stock market for $77 each. Shares outstanding - 175 million Net sales (all credit) Operating Costs except depreciation Depreciation expense EBIT Interest expense Earnings before taxes Income taxes Net income Common stock dividends Change in retained earnings $58,000 $54,978 $ 1,029 $2,793 1,050 $1,743 $ 601 $1133 $509.83 $1,233.17