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The following information pertains to SFC Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were
The following information pertains to SFC Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 45,000 Accounts receivable (net) 25,000 Inventory 20,000 Property, plant and equipment 210,000 Total Assets $300,000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equitycommon Total Liabilities and Stockholders' Equity $ 50,000 90.000 160,000 $300,000 Income Statement Sales Cost of goods sold Gross profit Operating expenses Net income $ 120,000 66,000 54.000 18,000 $ 36,000 Number of shares of common stock Market price of common stock Dividends per share What is the price-earnings ratio for SFC Company? O 5.5 times 6,000 $33 0.50 O 1.5 times O None of these O 1.1 times
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