The income statement for Christiansen, Inc., appears below.
| Christiansen, Inc. | |
| Income Statement | |
| For the Year Ended December 31, 2014 | |
| Net sales | 400,000 |
| Cost of goods sold | 235,000 |
| Gross profit | 165,000 |
| Expenses (including $14,000 interest and $17,000 income taxes) | 105,000 |
| Net income | 60,000 |
Additional information:
1. The weighted-average common shares outstanding in 2014 were 30,000 shares.
2. The market price of Christiansen, Inc. stock was $10.80 in 2014.
3. Cash dividends of $21,000 were paid, $6,000 of which were to preferred stockholders.
Instructions
Compute the following ratios for 2014.
(a) Earnings per share.
(b) Price-earnings.
(c) Payout.
(d) Times interest earned.
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