Question - The income statement for Christensen, Inc., appears below.
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CHRISTENSEN, INC. Income Statement For the Year Ended December 31, 2011
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Sales
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$399,400
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Cost of goods sold
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227,600
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Gross profit
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171,800
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Expenses (including $15,000 interest and $22,200 income taxes)
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109,500
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Net income
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$62,300
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Additional information:
1. The weighted average common shares outstanding in 2011 were 28,000 shares.
2. The market price of Christensen, Inc. stock was $18 in 2011.
3. Cash dividends of $22,300 were paid, $4,780 of which were to preferred stockholders.
Compute the following ratios for 2011.
(a) Earnings per share.
(b) Price-earnings.
(c) Payout.
(d) Times interest earned.