Reference no: EM132807952

Here is the income statement for Myers, Inc.

Myers, Inc.

Income Statement

For the Year Ended December 31, 2020

Sales revenue $432,000

Cost of goods sold 212,000

Gross profit 220,000

Expenses (including $10,000 interest and $29,500 income taxes) 86,000

Net income $ 134,000

Additional information:

1. Common stock outstanding January 1, 2020, was 16,000 shares, and 24,000 shares were outstanding at December 31, 2020.
2. The market price of Myers stock was $18.20 in 2020.
3. Cash dividends of $22,780 were paid, $4,000 of which were to preferred stockholders.

Problem 1: Compute the following measures for 2020. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

(a) Earnings per share

(b) Price-earnings ratio

(c) Payout ratio

(d) Times interest earned