Here is the income statement for Eberle, Inc. EBERLE, INC. Income Statement For

ID: 2489399 • Letter: H

Question

Here is the income statement for Eberle, Inc.

EBERLE, INC.
Income Statement
For the Year Ended December 31, 2014

$406,900

235,600

171,300

77,000

$ 94,300

Additional information:

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

________times

EBERLE, INC.
Income Statement
For the Year Ended December 31, 2014

Sales revenue

$406,900

Cost of goods sold

235,600

Gross profit

171,300

Expenses (including $10,300 interest and $27,900 income taxes)

77,000

Net income

$ 94,300

a. Earnings per share = Net income - preferred dividends / average weighted common stock shares outstanding

= 94300 - 3800 / 29900 + 37900 / 2

= 90500 / 33900 = 2.67

b. Price Earnings ratio = MPS / EPS

= 14 / 2.67 = 5.24

c. Dividend payout ratio = Total dividend / Net income

= 24900 (21100 + 3800) / 94300 = 0.26 or 26%

d. Times interest earned = EBIT / interest expense

= 132500 (171300 - 38800) / 10300

= 12.86 times