The income statement for Christensen, Inc., appears below.
CHRISTENSEN, INC.
Income Statement
For the Year Ended December 31, 2008
|
Sales
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$425,000
|
|
Cost of goods sold
|
243,000
|
|
Gross profit
|
182,000
|
|
Expenses (including $18,000 interest and $14,600 income taxes)
|
107,300
|
|
Net income
|
$74,700
|
Additional information:
1. The weighted average common shares outstanding in 2008 were 32,000 shares.
2. The market price of Christensen, Inc. stock was $19 in 2008.
3. Cash dividends of $29,000 were paid, $8,000 of which were to preferred stockholders.
Compute the following ratios for 2008.
(a) Earnings per share. (Round answer to 2 decimal places, e.g. 10.50.)
(b) Price-earnings. (Round answer to 1 decimal place, e.g. 10.5.)
(c) Payout. (Round answer to 0 decimal places, e.g. 125.)
(d) Times interest earned. (Round answer to 1 decimal place, e.g. 10.5.)