Use the balance sheet and the income statement below to answer the question that follows. Assets Current assets: J&M, Inc. BALANCE SHEET December 31 2015 2014 Changes J&M, INC. INCOME STATEMENT AND RETAINED EARNINGS (For Year Ended December 31, 2015) $300,000 188,000 112,000 44,720 20,000 14,000 58,720 (58,720) Cash and cash equivalents $8,500 $6,100 +$2,400 Short-term marketable sec. 3,000 5,000 - 2,000 Accounts receivable 23,700 19.500 + 4,200 Inventory 37,700 39,800 -2,100 Prepaid expenses 2,000 1,500 500 Total revenue Deferred charges 2,500 3,000 - 500 Total current assets 77,400 74,900 + 2,500 Cost of revenue Long-term Assets: Plant and equipment 154,000 145,000 +9,000 Less accumulated depreciation (70,000) Total assets $161,400 (50,000) $169,900 + 2,000 -8,500 Liabilities and Shareholders' Equity Current liabilities: Accounts payable 10,000 Wages payable 16,000 26,000 15,000 -16,000 + 1,000 Gross profit Operating expenses Selling, general administration Depreciation Lease payments Total Accrued taxes 2,000 Total current liabilities 28,000 3,500 44,500 - 1,500 Operating income -16,500 Other liabilities Interest pmt. Long-term debt 30,000 32,000 - 2,000 Income before income taxes Total liabilities $58,000 $76,500 -18,500 Provision for Income taxes Shareholders' equity Net income Preferred stock, 6%, $100 per value 10,000 10,000 Common stock, $4 par value (10,000 shares) 40,000 40,000 Additional paid-in capital 11,000 11.000 Retained earnings 42,400 32,400 +9,600 Total owners' equity 103,400 93,400 + 9,600 Total liabilities and equity $161,400 $169,900 - 8,500 If the share price is $75, what is the Price to Earnings Ratio? $20.87 $38.67 $0.75 $100 33,280 (5,200) 28,080 (8,080) $20,000