The income statement for Sutherland, Inc. appears below. SUTHERLAND, INC. Income Statement For the Year Ended December
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Question:
The income statement for Sutherland, Inc. appears below.
SUTHERLAND, INC. | |
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Income Statement | |
For the Year Ended December 31, 2017 | |
Net sales | $436,000 |
Cost of goods sold | 192,000 |
Gross profit | 244,000 |
Expenses (including $16,500 interest and $24,000 income taxes) | 84,000 |
Net income | $160,000 |
Additional information:
1. The weighted-average common shares outstanding in 2017 were 20,000 shares.
2. The market price of Sutherland, Inc. stock was $13 in 2017.
3. Cash dividends of $29,000 were paid, $5,100 of which were to preferred stockholders.
Compute the following ratios for 2017.
Earnings per share | | |
---|---|---|
Price-earnings ratio | | times |
Payout ratio | | % |
Times interest earned | | times |
Related Book For
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
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