Here is the income statement for Myers, Inc. MYERS, INC. Income Statement For the Year Ended December

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Here is the income statement for Myers, Inc.

MYERS, INC.

Income Statement

For the Year Ended December 31, 2019

Sales revenue......................................................................$400,000

Cost of goods sold.................................................................230,000

Gross profit.........................................................................170,000

Expenses (including $16,000 interest and $24,000 income taxes)............98,000

Net income........................................................................$ 72,000

Additional information:

1. Common stock outstanding January 1, 2019, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2019.

2. The market price of Myers stock was $14 in 2019.

3. Cash dividends of $21,000 were paid, $5,000 of which were to preferred stockholders.

Instructions

Compute the following measures for 2019.

(a) Earnings per share.

(b) Price-earnings ratio.

(c) Payout ratio.

(d) Times interest earned.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-1119305736

10th edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

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