E10-9A. Ratio analysis. (LO 3)
Furniture Showcase reported the following for its fiscal year ended June 30, 2008.
|
Sales |
$530,000 |
|
Cost of sales |
300,000 |
|
Gross margin |
230,000 |
|
Expenses* |
113,000 |
|
Net income |
$117,000 |
*Included in the expenses was $12,000 of interest expense.
Assume no income tax expense.
At the beginning of the year, the company had 50,000 shares of common stock outstanding. At the end of the year, there were 40,000 shares outstanding. The market price of the company’s stock at year-end was $20 per share. The company declared and paid $80,000 of dividends near year-end.
Calculate earnings per share, the price-earnings ratio, and times-interest-earned ratio for Furniture Showcase.