Pettijohn Inc $\text { Balance Shet (Millions of } \$ \text { ) }$

question 15

Multiple Choice

pettijohn Inc.
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm hasno amortization charges, it does not lease any ass ets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

$\text { Balance Shet (Millions of } \$ \text { ) }$
$\begin{array}{lr}\text { Assets } & \underline{2016} \\\text { Cash and securities } & \$ 1,554.00 \\\text { Accounts receivable } & 9,660.00 \\\text { inventories } & 13,440.00 \\\text { Total current assets } & \$ 24,654.00 \\\text { Net plant and equipment } & 17,346.00 \\\text { Total assets } & \$ 42,000.00 \\\text { Liabilities and Equity } \\\text { Accounts payable } & \$ 7,980.00 \\\text { Notes payable } & 5,880.0 0\\\text { Accruals } & 4,620.00\\\text { Total current liabilities } & \$ 18,480.00 \\\text { Cong-term bonds } & 10,920.00 \\\text { Cotal liabilities } & \$ 29,400.0 0\\\text { Common stock } & 3,360.00 \\\text { Retained earnings } & 9,240.00 \\\text { Total common equity } & \$ 12,600.00 \\\text { Total liabilities and equity } & \$ 42,000.00\\\\\text { Income Statement (Millions of \$) } & 2016 \\\text { Net sales } & \$ 58,800.00 \\\text { Operating costs except depr'n } & \$ 55,274.00 \\\text { Depreciation } & \$ 1,029.00\\\text { Earnings bef int and taxes (EBIT) } & \$ 2,497.00 \\\text { Less interest } & 1,050.00 \\\text { Earnings before taxes (EBT) } & \$ 1,447.00 \\\text { Taxes } & \$ 314.00 \\\text { Net income } & \$ 1,133.00\\\text { Dther data: }\\\text { Shares outstanding (millions) } & 175.00 \\\text { Common dividends } & 509.83 \\\text { Int rate on notes payable \& L-T bonds } & 6.25 \% \\\text { Federal plus state income tax rate } & 21.7 \% \\\text { Year-end stock price } & \$ 77.69\end{array}$
-Refer to the data for Pettijohn Inc.What is the firm's market-to-book ratio?

• A) 0.56
• B) 0.66
• C) 0.78
• D) 0.92
• E) 1.08

---

Definitions:

Form of the Graph

Describes the shape or structure of a graph or chart, which can provide insights into the characteristics of the data or the relationship between variables.

Substance of the Data

A term that refers to the essential information and insights that can be derived from analyzing a dataset, focusing on its meaningful components.

Graphical Excellence

refers to the effective, efficient, precise, and clear presentation of information through graphical means.

Graphical Techniques

Various methods of presenting data through visuals such as charts, graphs, and plots to simplify analysis and interpretation.