Answer Happy

21.The following information pertains to Rural Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Cash and short-term investments Accounts receivable (net) Inventory Property, plant and equipment Total Assets Sales Cost of goods sold Gross profit Current liabilities Long-term liabilities Stockholders' equity-common, Total Liabilities and Stockholders' Equity Operating expenses Net income Assets Liabilities and Stockholders' Equity Number of shares of common stock Market price of common stock Dividends per share c. 7.0 times d. 3.0 times Income Statement What is the price-earnings ratio for Rural? a. 8 times b. 4.0 times $ 40.000 30,000 25,000 215,000 $310.000 $ 60.000 75,000 175,000 $310.000 $95.000 45,000 50,000 15,000 $ 35,000 5,000 $21 1.00