The financial statements of Burnaby Mountain Trading Company are shown below.
Income Statement 2017
Sales $ 7,000,000 Cost of Goods Sold 5,000,000 Gross Profit $ 2,000,000 Selling and Administrative Expenses 1,700,000 EBIT $ 300,000 Interest Expense 50,000 Income before Tax $ 250,000 Taxes 100,000 Net Income $ 150,000 Burnaby Mountain Trading Company
Comparative Balance Sheets
2017 2016
Cash $ 90,000 $ 80,000 Accounts Receivable 810,000 800,000 Inventory 800,000 720,000 Total Current Assets 1,700,000 1,600,000 Fixed Assets 2,600,000 2,400,000 Total Assets $ 4,300,000 4,000,000 Accounts Payable $500,000 400,000 Bank Loans 100,000 100,000 Total Current Liabilities 600,000 500,000 Long-term Bonds 400,000 300,000 Total Liabilities $ 1,000,000 $800,000 Common Stock (200,000 shares) 500,000 500,000 Retainded Earnings 2,800,000 2,700,000 Total Equity $ 3,300,000 3,200,000 Total Liabilities and Equity 4,300,000 4,000,000 Note: The common shares are trading in the stock market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's P/E ratio for 2017 is _________.

Respuesta :

Based on the financial information of Burnaby Mountain Trading Company, the P/E ratio for 2017 is $36.

What is the P/E Ratio for Burnaby in 2017?

First find the earnings per share:

= Net income / Number of shares at end of 2017

= 150,000 / 200,000

= $0.75

Then find the P/E ratio:

= Market value per share / Earnings per share

= 27 / 0.75

= $36

Find out more on the P/E ratio at https://brainly.com/question/25772598.