Use the following information to answer the questions: Assets Liabilities and Equity Cash 12,000 Accounts payable 18,000 Marketable securities 4,000 Notes payable 8,000 Accounts receivable 8,000 Current liabilities 26,000 Inventory 32,000 Long-term debt 80,000 Current assets 56,000 Total liabilities 106,000 Machines 42,000 Paid-in capital 30,000 Real estate 60,000 Retained earnings 22,000 Net fixed assets 102,000 Equity 52,000 Total assets 158,000 Total liab. & equity 158,000 Line item Value Sales 810,000 Operating expenses 664,200 Depreciation 25,000 EBIT 120,800 Interest 8,000 Taxable income 112,800 Taxes 37,224 Net income 75,576 The company has 30,000 shares outstanding, each currently trading at $20.4.

Part 1

What are earnings per share?

Part 2

What is the price-earnings ratio?