$30$

CHAPTER $7$ Financial Statement Analysis

impite selected ratia

$7-16$ The income statement for $J$ and $T$ Seafood appears below.

$)$

J AND T SEAFOOD

Income Statement

Sales

For the Year Ended December $31,2008$

Cost of goods sold

Gross profit

Additional information:

The weighted average common shares outstanding in $2008$ were $30,000$ shares.

The market price of $J$ and $T$ Seafood stock was $$13$ in $2008.$

Cash dividends of $$23,000$ were paid, $$5,000$ of which were to preferred stockholders

Instructions

Compute the times interest earned ratio for $2008.$