Expenses $($including $$16,000$ interest and $$24,000$ income taxes$)105,000$

Net income

$$65,000$

Additional information:

The weighted$-$average common shares outstanding in $2014$ were

$30,000$ shares.

The market price of Sutherland, Inc. stock was $$13$ in $2014.$

Cash dividends of $$26,000$ were paid, $$5,000$ of which were to

preferred stockholders.

Compute the following ratios for $2014$: $(8)$

$($a$)$ Earnings per share.

$($b$)$ Price$-$earnings ratio.

$($c$)$ Payout ratio.

$($d$)$ Times interest earned

a$)$ Following data has been collected from the comparative balance sheet

of Hardy Company: $(6)$

I. Illustrate vertical analysis and horizontal analysis.

II$.$ Net income was $$500,000$ in $2013,$$$450,000$ in $2014,$ and $$522,000$

in $2015.$ What is the percentage of change from $($a$)2013$ to $2014$

and $($b$)2014$ to $2015?$ Is the change an increase or a decrease?

b$)$ If Seraton hotel had net income of $$585,000$ in $2015$ and it experienced a

$20\%$ increase in net income over $2014,$ what was its $2014$ net income? $(3)$

c$)$ Vertical analysis percentages for Palace Company's sales revenue, cost of

goods sold, and expenses are shown below. $(6)$

Vertical Analysis

Sales revenue

Cost of goods sold

Expenses

Did Palace's net income as a percentage of sales increase, decrease, or remain

unchanged over the $3-$year period? Provide numerical support for your answer.