Question
The income statement for Christensen, Inc., appears below. CHRISTENSEN, INC. Income Statement For the Year Ended December 31, 2011 Sales $400,000 Cost of goods sold
The income statement for Christensen, Inc., appears below.
CHRISTENSEN, INC. | |
Income Statement | |
For the Year Ended December 31, 2011 | |
Sales | $400,000 |
Cost of goods sold | 231,400 |
Gross profit | 168,600 |
Expenses (including $15,000 interest and $25,250 income taxes) | 105,100 |
Net income | $63,500 |
Additional information:
The weighted average common shares outstanding in 2011 were 25,000 shares.
The market price of Christensen, Inc. stock was $16 in 2011.
Cash dividends of $25,700 were paid, $4,900 of which were to preferred stockholders.
Compute the following ratios for 2011.
(a) Earnings per share. (Round answer to 2 decimal places, e.g. 10.50 and use the rounded the amount for future calculations.) (b) Price-earnings. (Round answer to 1 decimal place, e.g. 10.5.) (c) Payout. (Round answer to 0 decimal places, e.g. 25%.) (d) Times interest earned. (Round answer to 1 decimal place, e.g. 10.5.)
(a) | Earnings per share | $ |
(b) | Price-earnings | times |
(c) | Payout | % |
(d) | Times interest earned | times |
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