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E14-9 Christiansen, Inc

Price: $2.50


E14-9 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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