Using the information from S12-8, a market price of $25 per common share, and 100,000 common shares outstanding, compute the following for 2015:
1. Earnings per share
2. Price/earnings ratio
In S12-8
The 2015 financial statements for Country Cousin Stores show total assets of $490,000, total liabilities of $290,000, net sales of $1,800,000, net income of $450,000, income from operations of $520,000, cost of goods sold of $1,080,000, preferred dividends of $225,000, and interest expense of $20,000. Total assets and total liabilities for 2014 were $430,000 and $270,000, respectively. Preferred equity for both years is $35,000. Compute the following ratios for 2015: