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The financial statements of a company are given: Income Statement (Year N +1): Sales 4,000,000;...

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Accounting

The financial statements of a company are given: Income Statement (Year N +1): Sales 4,000,000; Cost of goods sold 3,040,000; Gross profit 960,000; Selling and administrative expenses 430,000; Operating profit 530,000; Interest expense 160],000; Income before tax 370,000; Tax expense 148,000; Net income 222,000. Balance Sheet figures in dollars at the end of Year (N+1) and Year N respectively: Cash: 60,000,50,000; Accounts receivable 550,000,500,000; Inventory 690,000,620,000 ; Total current assets: 1,300,000,1,170,000; Fixed assets 1,300,000,1.230,000; Total assets: 2,600,000,2,400,000; Accounts payable: 270,000,250,000; Bank Loan 580,000,500,000; Total current liabilities: 850,000,750,000; Bonds payable: 900,000,1,000,000; Total liabilities: 1,750,000,1,750,000; Common Stock (25,000 shares): 250,000,250,000; Retained earnings: 600,000,400,000; Total liabilities and Equity: 2,600,000,2,400,000. Note that the common shares are trading in the stock market for $100 each. The firm's market to book value for Year (N+1) is:
A 0.7256
B 1.5294
C 2.9400
D 3.6142
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