(6) Times interest earned ratio. (7) Return on common stockholders' equity. (Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.) (8) Earnings per share (assuming the corporation has a simple capital structure, with only common stock outstanding). (9) Price earnings ratio. (Assume the company's stock is selling for $26 per share.) (10) Divided yield ratio. (Assume that the company paid $1.25 per share in cash dividends.)

Income statement data Sales all on credit' 1,705,000 Cost of goods sold 575,000 Gross profit on sales 500,000 operating expenses 305,000 Operating income 195,000 Interest expense 20,400 Income before taxes 174,600 Income taxes 74,000 Net Income 100,600 

Balance sheet data cash 38,400 Accounts receivable 120,000 Inventorv 56,700 Prepaid Expenses 24,000 Total current assets 239,100 Total plant assets 708,900 Total assets 948,000 Accounts payable 91,200 Interest pavable 4,800 Long-term Itabllltles 204,000 Total habllltles 300,000 Common stock. S 10 par 480,000 retained earnings 168,000 Total liabilities and equity948,000