Wildhorse Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow Wildhorse Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash Accounts receivable, net Inventory Other current assets $417,400 776,400 681,000 247,100 2,121,900 3,381,900 $11,855,990 $10,503,800 $351,000 1,066,200 749,000 367,000 2,533,200 9,322,790 Total current assets Property, plant, & equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Long-term debt Total liabilities Preferred stock, $5 par value Common stock, $0.25 par value Retained earnings $3,110,000 2,846,100 3,892,650 6,738,750 57,000 103,850 3,604,200 3,765,050 3,702,650 6,812,650 57,000 130,000 4,856,340 5,043,340 Total stockholders' equity Total liabilities and stockholders' equity $11,855,990 $10,503,800 Wildhorse Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Dividends paid $10,520,000 $9,614,000 5,298,700 4,315,300 2,634,100 1,681,200 308,700 1,372,500 411,750 $960,750 4,875,000 5,645,000 2,840,300 2,804,700 398,000 2,406,700 722,010 $1,684,690 Preferred dividends Common dividends Total dividends paid Net Income retalned 29,550 476,000 505,550 455,200 3,149,000 $4,856,340 $3,604,200 29,550 403,000 432,550 1,252,140 3,604,200 Retained earnings, beginning of year Retained earnings, end of year (a) Your answer is correct. Calculate the earnings per share (average of 417,000 shares outstanding for the year) for 2016. (Round answer to 2 decimal places,e.g. 2.55.) 3.97 Earning per share Jper share Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO Attempts: 1 of 3 used (b) Calculate the price/earnings ratio (market price of $45 at year-end) for 2016. (Round answer to 2 decimal places, e.g. 2.55.) Price/earnings ratio