Shown Below Are Selected Data from the Financial Statements of Supreme

question 84

Multiple Choice

Shown below are selected data from the financial statements of Supreme Co. Dollar amounts are in millions (except for the per share data) .
$$\begin{array}{l}\begin{array} { | l | r | } \hline \text { Income statement data: } & \\\hline \text { Net sales } & \mathbf { \$ 1 , 2 3 0 } \\\hline \text { Cost of goods sold } & \mathbf { 5 2 0 } \\\hline \text { Operating expenses } & \mathbf { 4 4 0 } \\\hline \text { Net income } & \mathbf { \$ 3 9 0 } \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \mathbf { \$ 2 , 4 0 0 } \\\hline \text { Average total assets } & \mathbf { \$ 4 , 0 0 0 } \\\hline\end{array}\\\\\begin{array} { | l | r | } \hline \text { Income statement data: } & \\\hline \text { Sales } & \$ 1,230 \\\hline \text { Cost of goods sold } & 520 \\\hline \text { Operating expenses } & 440 \\\hline \text { Profit } & \$ 390 \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \$ 2,400 \\\hline \text { Average total assets } & \$ 4,000 \\\hline\end{array}\end{array}$$
Per share data (these amounts stated in actual dollars, not millions) :
Supreme reported earnings per share for the year of $4 and paid cash dividends of $1 per share. At year end, the Wall Street Journal listed Supreme's shares as trading at $88 per share.
-Refer to the above data. Supreme's price/earnings ratio at year end was:

• A) 25.
• B) 22.
• C) 100.
• D) Some other amount.

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Definitions:

Gland Cells

Specialized cells that secrete hormones or other substances directly into the blood or surrounding tissues.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, such as a neuromuscular junction, from one neuron to another 'target' neuron, muscle cell, or gland cell.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out signals to the rest of the body.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.