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Discuss measures times interest earned

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Reference no: EM131785735

Here is the income statement for Eberle, Inc.

EBERLE, INC.
Income Statement
For the Year Ended December 31, 2014
Sales revenue $400,000
Cost of goods sold 230,000
Gross profit 170,000
Expenses (including $16,000 interest and $24,000 income taxes) 98,000
Net income mce_markernbsp;72,000

Additional information:

1. Common stock outstanding January 1, 2014, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2014.
2. The market price of Eberle, Inc., stock was $14 in 2014.
3. Cash dividends of $21,000 were paid, $5,000 of which were to preferred stockholders.

Compute the following measures for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)

(a) Earnings per share
(b) Price-earnings ratio  
(c) Payout ratio    
(d) Times interest earned  

 

Reference no: EM131785735

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