The following amounts were taken from the financial statements of Waterway Company: 2017 2016 Total assets $815000 $930000 Net sales 760000 630000 Gross profit 400000 360000 Net income 105000 117000 Weighted average number of common shares outstanding 70000 70000 Market price of common stock $42 $38 The price-earnings ratio for 2017 is 28 times. 23 times. 42 times. 4 times.

Question 13 The following amounts were taken from the financial statements of Waterway Company: 2017 2016 Total assets 5815000 5930000 Net sales 760000 630000 Gross profit 400000 360000 Net income 105000 117000 Weighted average number of common shares outstanding 70000 70000 Market price of common stock $42 $38 The price-earnings ratio for 2017 is 28 times. 23 times. 42 times. 4 times Question 16 Crane Company reported net income of $90000 for the year ended December 31, 2017. During the year, inventories decreased by $14500, accounts payable decreased by $19500, depreciation expense was $17500 and a gain on disposal of equipment of $8500 was recorded. Net cash provided by operating activities in 2017 using the indirect method was $104500. $94000. $102500. $86500