Here is the income statement for Eberle, Inc.

EBERLE, INC.

Income Statement For the Year Ended December 31, 2014 Sales revenue $400,000 Cost of goods sold 230,000 Gross profit 170,000 Expenses (including $16,000 interest and $24,000 income taxes) 98,000 Net income $ 72,000 Additional information:

1 Common stock outstanding January 1, 2014, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2014.

2 The market price of Eberle, Inc., stock was $14 in 2014.

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

Instructions Compute the following measures for 2014.

(a) Earnings per share.

(c) Payout ratio.

(b) Price-earnings ratio.

(d) Times interest earned.

AppendixLO1