The financial statements of GOLDEN Corp. are shown below. …
The financial statements of GOLDEN Corp. are shown below. GOLDEN Corp.Income Statement 2018 Sales $9,300,000 Cost of Goods Sold 5,750,000 Depreciation Expense 550,000———————– Gross Profit $3,000,000 Selling and Administrative Expenses 2,200,000———————– EBIT $800,000 Interest Expense 200,000———————– Income before Tax $600,000 Taxes 375,000———————– Net Income $225,000 GOLDEN Corp.Comparative Balance Sheets 2018 2017 Cash $50,000 $40,000 Accounts Receivable 570,000 600,000 Inventory 530,000 460,000 Total Current Assets ———————$1,150,000 ——————–$1,100,000 Fixed Assets 2,050,000——————— 1,400,000 ——————- Total Assets $3,200,000 ___________________ $2,500,000 __________________ Accounts Payable $320,000 $300,000 Bank Loans 480,000———————- 400,000———————- Total Current Liabilities $800,000 $700,000 Long-term Bonds 1,500,000———————- 1,000,000———————- Total Liabilities $2,300,000 $1,700,000 Common Stock (100,000 shares) 200,000 200,000 Retained Earnings 700,000———————– 600,000———————- Total Equity $900,000———————– $800,000———————- Total Liabilities and Equity $3,200,000 $2,500,000 Note: The common shares are trading in the stock market for $15 per share.Refer to the financial statements of GOLDEN Corp. The firm’s P/E ratio for 2018 is _________.