Here is the income statement for Myers, Inc.

Additional information:

1. Common stock outstanding January 1,2025 , was 32,000 shares, and 40,000 shares were outstanding at December 31, 2025. (Use a simple average for weighted-average.)

2. The market price of Myers stock was \(\$ 14\) on December 31, 2025.

3. Cash dividends of \(\$ 21,000\) were declared and paid.

Instructions

Compute the following measures for 2025 .

a. Earnings per share.

b. Price-earnings ratio.

c. Payout ratio.

d. Times interest earned.

Transcribed Image Text:

Net sales Cost of goods sold Myers, Inc. Income Statement For the Year Ended December 31, 2025 Gross profit Expenses (including $16,000 interest and $24,000 income taxes) Net income $400,000 230,000 170,000 98,000 $ 72,000