2 The income statement for Christensen, Inc., appears below CHRISTENSEN, INC. Income Statement For the Year Ended December 31, 2010 Sales Cost of goods sold Gross profit Expenses (including $16,000 interest and $24,000 income taxes) Net income Additional information: 1. The weighted average common shares outstanding in 2010 were 30,000 shares. 2. The market price of Christensen, Inc. stock was $13 in 2010. 3. Cash dividends of $26,000 were paid, $5,000 of which were to preferred stockholders. Instructions Compute the following ratios for 2010. (a) Earnings per share. (b) Price-earnings. (c) Payout. (d) Times interest earned. $400,000 230,000 170,000 105,000 $ 65,000