Problem - The income statement for Sutherland, Inc., appears below.
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SUTHERLAND, INC. Income Statement For the Year Ended December 31, 2017
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Net Sales
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$416,000
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Cost of goods sold
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198,000
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Gross profit
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218,000
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Expenses (including $18,000 interest and $26,000 income taxes)
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86,000
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Net Income
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$132,000
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Additional information:
1. The weighted-average common shares outstanding in 2017 were 31,000 shares.
2. The market pride of Sutherland, Inc. stock was $14 in 2017.
3. Cash dividends of $29,500 were paid, $7,200 of which were to preferred stockholders.
Compute the following ratios for 2017.
Earnings per share
Price-earnings ratio times
Payout ratio
Times interest earned