The following balances and amounts were taken from the financial statements of Frisbee, Inc. The items are presented in alphabetical order.

Accounts payable $35,000

Accounts receivable 47,500

Cash 180,000

Number of common shares 8,000

Gross profit 185,000

Market price per share 8

Net sales 500,000

Other current liabilities 22,000

Net income 64,000

Salaries payable 10,000

The price-earnings ratio is:

a) 1

b) 2

c) 12

d) 1.5

Please show the calculations to the answer, thank you.