The income statement for Christiansen, Inc., appears below. Chri

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

Christiansen, Inc.

Income Statement

For the Year Ended December 31, 2014

Net sales …………………………………………………………............................…..$400,000

Cost of goods sold …………………………………………….........................………235,000

Gross profit ……………….………………………………………...........................……165,000

Expenses (including $14,000 interest and $17,000 income taxes) ……105,000

Net income ……………………………………………...............................………………$ 60,000

Additional information:

1. The weighted-average common shares outstanding in 2014 were 30,000 shares.

2. The market price of Christiansen, Inc. stock was $10.80 in 2014.

3. Cash dividends of $21,000 were paid, $6,000 of which were to preferred stockholders.

Instructions

Compute the following ratios for 2014.

(a) Earnings per share.

(b) Price-earnings.

(c) Payout.

(d) Times interest earned.

Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Managerial Accounting Tutors
Ask questions directly from Qualified Online Managerial Accounting Tutors .
Best for online homework assistance.