Here is the income statement for Swayze, Inc.
|
SWAYZE, INC. |
|
|
Sales |
$400,000 |
|
Cost of goods sold |
230,000 |
|
Gross profit |
170,000 |
|
Expenses (including $16,000 interest and $24,000 income taxes) |
90,000 |
|
Net income |
$ 80,000 |
Additional information:
1. Common stock outstanding January 1, 2010, was 30,000 shares, and 40,000 shares were outstanding at December 31, 2010.
2. The market price of Swayze, Inc., stock was $17.60 in 2010.
3. Cash dividends of $21,000 were paid, $10,000 of which were to preferred tockholders.
Instructions
Compute the following measures for 2010.
(a) Earnings per share.
(b) Price earnings ratio.
(c) Payout ratio.
(d) Times interest earned ratio.