Exhibit 3.1 The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2012 Cash and securities $ 1,554.0 Accounts receivable 9,660.0 Inventories 13,440.0 Total current assets $24,654.0 Net plant and equipment 17,346.0 Total assets $42,000.0 Liabilities and Equity Accounts payable $ 7,980.0 Notes payable 5,880.0 Accruals 4,620.0 Total current liabilities $18,480.0 Long-term bonds 10,920.0 Total debt $29,400.0 Common stock 3,360.0 Retained earnings 9,240.0 Total common equity $12,600.0 Total liabilities and equity $42,000.0 Income Statement (Millions of $) 2012 Net sales $58,800.0 Operating costs except depr'n $54,978.0 Depreciation $ 1,029.0 Earnings bef int and taxes (EBIT $ 2,793.0 Less interest 1,050.0 Earnings before taxes (EBT) $ 1,743.0 Taxes $ 610.1 Net income $ 1,133.0 Other data: Shares outstanding (millions) 175.00 Common dividends $ 509.83 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 35% Year-end stock price $77.69

a)

Refer to Exhibit 3.1. What is the firm's current ratio?

Select one:

A. 0.97

B. 1.20

C. 1.08

D. 1.47

E. 1.33

(b)

Refer to Exhibit 3.1. What is the firm's quick ratio?

Select one:

A. 0.87

B. 1.05

C. 0.73

D. 0.49

E. 0.61

(c)

Refer to Exhibit 3.1. What is the firm's debt-to-assets ratio?

Select one:

A. 45.93%

B. 51.03%

C. 63.00%

D. 56.70%

E. 70.00%

(d)

Refer to Exhibit 3.1. What is the firm's ROA?

Select one:

A. 2.97%

B. 3.95%

C. 2.70%

D. 3.26%

E. 3.59%

(e)

Refer to Exhibit 3.1. What is the firm's ROE?

Select one:

A. 9.91%

B. 8.99%

C. 10.41%

D. 9.44%

E. 8.54%

(f)

Refer to Exhibit 3.1. What is the firm's dividends per share?

Select one:

A. $3.88

B. $3.53

C. $2.62

D. $3.20

E. $2.91

(g)

Refer to Exhibit 3.1. What is the firm's cash flow per share?

Select one:

A. $10.59

B. $12.35

C. $11.74

D. $10.06

E. $11.15

(h)

Refer to Exhibit 3.1. What is the firm's P/E ratio?

Select one:

A. 12.6

B. 14.6

C. 13.2

D. 13.9

E. 12.0

(i)

Refer to Exhibit 3.1. What is the firm's book value per share?

Select one:

A. $64.98

B. $61.73

C. $68.40

D. $72.00

E. $75.60