Use the balance sheet and the income statement below to answer the question that follows. J&M, Inc. BALANCE SHEET December 31 2015 2014 Changes Assets Current assets: J&M, INC. $ 8,500 Cash and cash equivalents Short-term marketable sec. $ 6,100 5,000 3,000 +$2,400 - 2,000 +4,200 INCOME STATEMENT AND RETAINED EARNINGS (For Year Ended December 31, 2015) 23,700 19,500 Accounts receivable Inventory 37,700 39,800 -2,100 2,000 1,500 500 Prepaid expenses Deferred charges 2,500 3,000 - 500 Total current assets 77,400 74,900 + 2,500 Long-term Assets: Plant and equipment Less accumulated depreciation 154,000 145,000 (70,000) (50,000) $161,400 + 9,000 + 2,000 $169,900 - 8,500 44,720 Total assets 20,000 Liabilities and Shareholders' Equity 14,000 Current liabilities: 58,720 Accounts payable 10,000 26,000 -16,000 payments 16,000 + 1,000 Wages payable Accrued taxes Total 2,000 15,000 3,500 44,500 -16,500 - 1,500 Operating income Total current liabilities 28,000 Other liabilities Interest pmt. 30,000 32,000 - 2,000 $76,500 -18,500 Income before income taxes Total liabilities $58,000 Provision for Income taxes Net income Shareholders' equity Preferred stock, 6%, $100 per value 10,000 10,000 40,000 40,000 Common stock, $4 par value (10,000 shares) Additional paid-in capital Retained earnings 11,000 11,000 42,400 32,400 +9,600 Total owners' equity 103,400 93,400 + 9,600 Total liabilities and equity $161,400 $169,900 - 8,500 If the share price is $75, what is the Price to Earnings Ratio? O $20.87 $38.67 Long-term debt O $0.75 O $100 Total revenue Cost of revenue Gross profit Operating expenses Selling, general administration Depreciation Lease $300,000 188,000 112,000 (58,720) 33,280 (5,200) 28,080 (8,080) $20,000