The income statement for Sutherland, Inc., appears below.

Additional information:

1. The weighted-average common shares outstanding in 2017 were 30,000 shares.

2. The market price of Sutherland, Inc. stock was $13 in 2017.

3. Cash dividends of $26,000 were paid, $5,000 of which were to preferred stockholders.

Instructions

Compute the following ratios for 2017.

(a) Earnings per share.

(b) Price-earnings ratio.

(c) Payout ratio.

(d) Times interest earned.

Transcribed Image Text:

SUTHERLAND, INC. Income Statement For the Year Ended December 31, 2017 Net sales $400,000 Cost of goods sold 230,000 Gross profit Expenses (including $16,000 interest and $24,000 income taxes) 170,000 105,000 Net income $ 65,000