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The income statement for Pointe Company for the year ended December 31, 2017 appears below. Sales $720,000 Cost of goods sold 380,000 Gross profit 340,000
The income statement for Pointe Company for the year ended December 31, 2017 appears below.
Sales | $720,000 | ||
Cost of goods sold | 380,000 | ||
Gross profit | 340,000 | ||
Expenses | 190,000 | * | |
Net income | $150,000 |
*Includes $20,000 of interest expense and $25,000 of income tax expense. Additional information:
1. | Common stock outstanding on January 1, 2017 was 50,000 shares. On July 1, 2017, 10,000 more shares were issued. The weighted-average shares are 55,000. | |
2. | The market price of Pointe's stock was $11.70 at the end of 2017. | |
3. | Cash dividends of $30,000 were paid, $7,000 of which were paid to preferred stockholders. |
Compute the following ratios for 2017: (Round answers to 2 decimal places, e.g. 2.25.)
a) Earnings per share $
b) Price Earnings times
c) Times interest earned times
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