Question
Here is the income statement for Myers, Inc. Myers, Inc. Income Statement For the Year Ended December 31, 2020 --- -Sales revenue $412,000 -Cost of
Here is the income statement for Myers, Inc. Myers, Inc. Income Statement For the Year Ended December 31, 2020 --- -Sales revenue $412,000
-Cost of goods sold 220,000
-Gross profit 192,000
-Expenses (including $10,000 interest and $29,500 income taxes) 94,000
-Net income $ 98,000
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 $11.04 in 2020.
3. Cash dividends of $23,520 were paid, $6,000 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started