The Amos Corporation Reported the Following Income Statement and Balance

question 48

Multiple Choice

The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. Inventory and prepaid expenses account for $30,000 of the current year's current assets.
Average inventory for the current year is $36,250.
Average net accounts receivable for the current year is $45,000.
There are 53,000 shares of common stock outstanding.
Total dividends paid during the current year were $17,000.
The market price per share of common stock is $10.
What is the price-earnings ratio for the current year? (Round any intermediary calculations and your final answer to the nearest cent.)

• A)3)19
• B)3)13
• C)13.13
• D)10.00

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Definitions:

Framing Effect

A cognitive bias where people decide on options based on whether they are presented in a positive or negative way.

Risky Strategy

In decision making, opting for an option with potentially higher rewards but also higher risks, often contrasted with a safe or conservative approach.

Gains

Benefits, improvements, or increases usually achieved through effort, such as in skills, knowledge, or material success.

Maximizing

A decision-making strategy which seeks the best possible outcome or solution.