Problem 4 FINANCIAL RATIOS. The Format Company reports the following balance sheet data: Current liabilities $280,000 Bonds payable, 16% $120,000 Preferred stock, 14%, $100 par value $200,000 Common stock $25 par value, 16,800 shares $420,000 Paid-in capital on common stock $240,000 Retained earnings $180,000 Income before taxes is $160,000. The tax rate is 40 percent. Common stockholders' equity in the previous year was $800,000. The market price per share of common stock is $35. Requirement: Calculate the following: a. Net income; b. Preferred dividends; c. Return on common stock; d. Times interest earned; e. Earnings per share; f. Price/earnings ratio; and g. Book value per share