The Following Amounts Were Taken from the Financial Statements of Palmer

question 115

Multiple Choice

The following amounts were taken from the financial statements of Palmer Company: $\begin{array}{lrr}&2014&2013\\\text { Total assets } & \$ 800,000 & \$ 1,000,000 \\\text { Net sales } & 720,000 & 650,000 \\\text { Gross profit } & 352,000 & 320,000 \\\text { Net income } & 144,000 & 117,000 \\\text { Weighted average number of ordinary shares outstanding } & 120,000 & 120,000 \\\text { Market price of ordinary shares } & \$ 36 & \$ 40\end{array}$ The price-earnings ratio for 2013 is

• A) 30 times.
• B) 20 times.
• C) 10 times.
• D) 5 times.

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