The income statement for Woodford Corporation for the year ended December 31, 2021 appears below:

Sales

$ 610,000

Cost of goods sold

380,000

Gross profit

230,000

Expenses

180,000*

Profit

$ 50,000

*Includes $30,000 of interest expense and $16,000 of income tax expense. Additional information:

1.	The weighted average number of common shares issued on December 31, 2021 were 50,000

shares.

2.	The market price of Woodford's shares was $18 at the end of 2021.

3.	Cash dividends of $10,000 were paid, $6,000 of which were paid to preferred shareholders.

Instructions

a)	Calculate the following ratios for 2021:

i.	earnings per share

ii.	price-earnings

iii.	interest coverage

iv.	total dividend payout

b)	Comment on the above ratios, assuming the averages for the industry in which Woodford

operates are as follows:

(i)	earnings per share $1.20

(ii)	price-earnings 10 times

(iii)

interest coverage 2.2 times