E10-98. Ratio analysis. (LO 3)
International Imports Corporation reported the following for its fiscal year ended
June 30, 2007.
|
Sales |
$640,000 |
|
Cost of sales |
470,000 |
|
Gross margin |
170,000 |
|
Expenses* |
94,000 |
|
Net income |
$ 76,000 |
*Included in the expenses were $9,000 of interest expense and $14,000 of income tax expense.
At the beginning of the year, the company had 40,000 shares of common stock outstanding and no preferred stock. At the end of the year, there were 25,000 common shares outstanding and no preferred stock. The market price of the company’s stock at year-end was $15 per share. The company declared and paid $46,000 of dividends near year-end.
Calculate earnings per share, the price-earnings ratio, and times-interest-earned ratio for International Imports.