Here is the income statement for Ginsberg, Inc.

GINSBERG, INC. Income Statement For the Year Ended December 31, 2020

Sales revenue $400,000 Cost of goods sold 250,000 Gross profit 150,000 Expenses (including $12,000 interest and $22,000 income taxes) 100,000 Net income $ 50,000

Additional information:

Common stock outstanding January 1, 2020, was 30,000 shares, and 40,000 shares were outstanding at December 31, 2020.

The market price of Ginsberg, Inc. stock was $15.86 in 2020.

Cash dividends of $16,000 were paid, $4,500 of which were to preferred stockholders.

Instructions Compute the following measures for 2020.

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