Question - The income statement for Christensen, Inc., appears below.
CHRISTENSEN, INC. Income Statement For the Year Ended December 31, 2011
Sales $395,800
Cost of goods sold 234,500
Gross profit 161,300
Expenses (including $16,000 interest and $22,940 income taxes) 109,900
Net income $51,400
Additional information:
The weighted average common shares outstanding in 2011 were 26,000 shares.
The market price of Christensen, Inc. stock was $12 in 2011.
Cash dividends of $23,000 were paid, $5,270 of which were to preferred stockholders.
Compute the following ratios for 2011.
(a) Earnings per share. (Round answer to 2 decimal places, e.g. 10.50 and use the rounded the amount for future calculations.)
(b) Price-earnings. (Round answer to 1 decimal place, e.g. 10.5.)
(c) Payout. (Round answer to 0 decimal places, e.g. 25%.)
(d) Times interest earned. (Round answer to 1 decimal place, e.g. 10.5.)