II. The income statement for Robina Company for the year ended December 31, 2020, appears below.

Sales Php720,000

Cost of goods sold 380,000

Gross profit 340,000

Expenses 190,000*

Net income Php150,000

*Includes $20,000 of interest expense and Php22,000 of income tax expense.

Additional information:

1. Common stock outstanding on January 1, 2020 was 50,000 shares. On July 1, 2020, 10,000 more shares were issued.

2. The market price of Robina's stock was Php12 at the end of 2020.

3. Cash dividends of Php30,000 were paid, Php6,000 of which were paid to preferred stockholders.

Instructions

Compute the following ratios for 2020:

(a) earnings per share.

(b) price-earnings.

(c) times interest earned.