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.

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Related Book For  book-img-for-question

Managerial Accounting Tools for business decision making

ISBN: 978-1118096895

6th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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