Question

The income statement for Sutherland, Inc., appears below.
SUTHERLAND, INC.
Income Statement
For the Year Ended December 31, 2014
Net sales .......................... $400,000
Cost of goods sold ...................... 230,000
Gross profit ........................ 170,000
Expenses (including $16,000 interest and $24,000 income taxes) ... 105,000
Net income ......................... $ 65,000

Additional information:
1. The weighted-average common shares outstanding in 2014 were 30,000 shares.
2. The market price of Sutherland, Inc. stock was $13 in 2014.
3. Cash dividends of $26,000 were paid, $5,000 of which were to preferred stockholders.

Instructions
Compute the following ratios for 2014.
(a) Earnings per share.
(b) Price-earnings ratio.
(c) Payout ratio.
(d) Times interest earned.



$1.99
Sales9
Views478
Comments0
  • CreatedJanuary 30, 2014
  • Files Included
Post your question
5000