(Answered) Question - the income statement for christensen inc appears

Accounting

Question - The income statement for Christensen, Inc., appears below.

CHRISTENSEN, INC. Income Statement For the Year Ended December 31, 2011
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 2011 were 30,000 shares.

2. The market price of Christensen, Inc. stock was $13 in 2011.

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

Instructions - Compute the following ratios for 2011.

(a) Earnings per share.

(b) Price-earnings.

(d) Times interest earned.

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