The income statement for Christiansen, Inc., appears below. Christiansen, Inc. Income Statement For the Year Ended December
Question:
The income statement for Christiansen, Inc., appears below.
Christiansen, Inc.
Income Statement
For the Year Ended December 31, 2014
Net sales …………………………………………………………............................…..$400,000
Cost of goods sold …………………………………………….........................………235,000
Gross profit ……………….………………………………………...........................……165,000
Expenses (including $14,000 interest and $17,000 income taxes) ……105,000
Net income ……………………………………………...............................………………$ 60,000
Additional information:
1. The weighted-average common shares outstanding in 2014 were 30,000 shares.
2. The market price of Christiansen, Inc. stock was $10.80 in 2014.
3. Cash dividends of $21,000 were paid, $6,000 of which were to preferred stockholders.
Instructions
Compute the following ratios for 2014.
(a) Earnings per share.
(b) Price-earnings.
(c) Payout.
(d) Times interest earned.
Step by Step Answer:
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso