The Following Amounts Were Taken from the Financial Statements of Ando

Multiple Choice

The following amounts were taken from the financial statements of Ando Company: $\begin{array}{lrr}&2017&2016\\\text { Total assets } & \$ 800,000 & \$ 1,000,000 \\\text { Net sales } & 720,000 & 650,000 \\\text { Gross profit } & 352,000 & 320,000 \\\text { Net income } & 108,000 & 117,000 \\\text { Weighted average number of } & & \\\quad \text { common shares outstanding } & 90,000 & 90,000 \\\text { Market price of common stock } & \$ 42 & \$ 39\end{array}$ The price-earnings ratio for 2017 is

A) 35 times.
B) 30 times.
C) 42 times.
D) 3 times.