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

SUTHERLAND, INC.

Income Statement

For the Year Ended December 31, 2014

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

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

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

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

Net income ......................... $ 65,000

Additional information:

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

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

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

Instructions

Compute the following ratios for 2014.

(a) Earnings per share.

(b) Price-earnings ratio.

(c) Payout ratio.

(d) Times interest earned.