The financial statements of Black Barn Company are given below. Black Barn Company Income Statement (2009) Sales Cost of goods sold Gross profit Selling & administrative expenses Operating profit Interest expense Income before tax Tax expense Net income $8,000,000 5,260,000 2,740,000 1,500,000 1,240,000 140,000 1,100,000 440,000 $ 660,000 Balance Sheet Cash Accounts receivable Inventory Total current assets Fixed assets Total assets 2009 2008 $ 200,000 $ 50,000 1,200,000 950,000 1,840,000 1,500,000 $3,240,000 $2,500,000 3,200,000 3,000,000 $6,440,000 $5,500,000 Accounts Payable Bank loan Total current liabilities Bond payable Total liabilities Common stock (130,000 shares) Retained earnings Total liabilities & equity $ 800,000 $ 720,000 600,000 100,000 $1,400,000 $ 820,000 900,000 1,000,000 $2,300,000 $1,820,000 $ 300,000 $ 300,000 3,840,000 3,380,000 $6,440,000 $5,500,000 Note: The common shares are trading in the stock market for $40 each. Refer to the financial statements of Black Barn Company. The firm's P/E ratio for 2009 is Multiple Choice 8.88. 763. 7.88 7.32