Use the financial statements below to calculate the following ratios: a) Payout Ratio b) Times Interest Earned c) Return on Equity

Income Statement	2010
Revenue	2200.0
Cost of goods sold	1980.0
EBIT	220.0
Interest expense	40.0
Earnings before taxes	180.0
Taxes	72.0
Net income	108.0
Dividends	72.0
Retained earnings	36.0
Balance Sheet (year end)	a/o 12/31/10
Assets
Cash	220.0
Fixed assets	880.0
Total assets	1100.0
Liabilities and equity
Long-term debt	400.0
Shareholders' equity	700.0
Total liab. & share. equity	1100.0