for the year ended December 31, 2000. Note: Make the necessary adjustments before preparing the income statement.

b. Assume that stockholders’equity at the beginning of the year was $740,000.

The only changes recorded in stockholders’ equity during 2000 were net income and dividends. Calculate return on equity and evaluate your results.

c. Calculate earnings per share. Assume that 140,000 shares were outstanding.

d. Calculate times interest earned.