Here is the income statement for Swayze, Inc.

SWAYZE, INC.
Income Statement
For the Year Ended December 31, 2010

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.