Reference no: EM131797473

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

CHRISTENSEN, INC.  Income Statement For the Year Ended December 31, 2011

Sales $395,800

Cost of goods sold 234,500

Gross profit 161,300

Expenses (including $16,000 interest and $22,940 income taxes) 109,900

Net income $51,400

Additional information:

The weighted average common shares outstanding in 2011 were 26,000 shares.

The market price of Christensen, Inc. stock was $12 in 2011.

Cash dividends of $23,000 were paid, $5,270 of which were to preferred stockholders.

Compute the following ratios for 2011.

(a) Earnings per share. (Round answer to 2 decimal places, e.g. 10.50 and use the rounded the amount for future calculations.)

(b) Price-earnings. (Round answer to 1 decimal place, e.g. 10.5.)

(c) Payout. (Round answer to 0 decimal places, e.g. 25%.)

(d) Times interest earned. (Round answer to 1 decimal place, e.g. 10.5.)