Reference no: EM132451137
Problem - Here is the income statement for Eberle, Inc.
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EBERLE, INC. Income Statement For the Year Ended December 31, 2014
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Sales revenue
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$400,000
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Cost of goods sold
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230,000
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Gross profit
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170,000
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Expenses (including $16,000 interest and $24,000 income taxes)
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98,000
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Net income
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$ 72,000
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Additional information:
A. Common stock outstanding January 1, 2014, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2014.
B. The market price of Eberle, Inc., stock was $14 in 2014.
C. Cash dividends of $21,000 were paid, $5,000 of which were to preferred stockholders.
Required - Compute the following measures for 2014.
(a) Earnings per share.
(b) Price-earnings ratio.
(c) Payout ratio.
(d) Times interest earned.