Exercise 14-11

Here is the income statement for Myers, Inc.

Myers, Inc. Income Statement For the Year Ended December 31, 2020
Sales revenue		$404,000
Cost of goods sold		186,000
Gross profit		218,000
Expenses (including $10,000 interest and $30,000 income taxes)		98,000
Net income		$ 120,000

Additional information:

1.		Common stock outstanding January 1, 2020, was 16,000 shares, and 24,000 shares were outstanding at December 31, 2020.
2.		The market price of Myers stock was $11.20 in 2020.
3.		Cash dividends of $25,200 were paid, $8,000 of which were to preferred stockholders.

Compute the following measures for 2020. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

(a)		Earnings per share		$
(b)		Price-earnings ratio			times
(c)		Payout ratio			%
(d)		Times interest earned			times