Here is the income statement for Myers, Inc. 

Additional information: 

1. Common stock outstanding January 1, 2022, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2022. 

2. The market price of Myers stock was $14 in 2022. 

3. Cash dividends of $21,000 were paid, $5,000 of which were to preferred stockholders. 

Instructions 

Compute the following measures for 2022. 

a. Earnings per share. 

c. Payout ratio. b. Price-earnings ratio. 

d. Times interest earned.

Transcribed Image Text:

Myers, Inc. Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Expenses (including $16,000 interest and $24,000 income taxes) Net income $400,000 230,000 170,000 $ 72,000