Compute the price-earnings ratio times

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Problem - The income statement for Sutherland, Inc., appears below.

SUTHERLAND, INC. Income Statement For the Year Ended December 31, 2017

Net Sales

$416,000

Cost of goods sold

198,000

Gross profit

218,000

Expenses (including $18,000 interest and $26,000 income taxes)

86,000

Net Income

$132,000

Additional information:

1. The weighted-average common shares outstanding in 2017 were 31,000 shares.

2. The market pride of Sutherland, Inc. stock was $14 in 2017.

3. Cash dividends of $29,500 were paid, $7,200 of which were to preferred stockholders.

Compute the following ratios for 2017.

Earnings per share

Price-earnings ratio times

Payout ratio

Times interest earned

Reference no: EM131565014

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