Financial Accounting: E14-9 The income statement for Christensen, Inc

Financial Accounting 
The income statement for Christensen, Inc., appears below. 
Income Statement 
For the Year Ended December 31, 2008 
Sales 400,000 
Cost of goods sold 230,000 
Gross profit 170,000 
Expenses (including $16,000 interest and $24,000 income taxes) 105,000 
Net income $65,000 

Additional information: 
1. The weighted average common shares outstanding in 2008 were 30,000 shares. 
2. The market price of Christensen, Inc. stock was $13 in 2008. 
3. Cash dividends of $26,000 were paid, $5,000 of which were to preferred stockholders. 

Compute the following ratios for 2008. 
(a) Earnings per share. (Round answer to 2 decimal places, e.g. 10.50 and use the rounded the amount for future calculations.) 
(b) Price-earnings. (Round answer to 1 decimal place, e.g. 10.5.) 
(c) Payout. (Round answer to 0 decimal places, e.g. 125.) 
(d) Times interest earned. (Round answer to 1 decimal place, e.g. 10.5.)
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