The income statement for Cullumber, Inc. is as follows: CULLUMBER, INC. Income Statement For the Year Ended December 31, 2021 Sales revenue $442,000 Cost of goods sold 264,000 Gross profit 178,000 Expenses (including $19,000 interest and $36,700 income taxes) 114.000 Net income $64,000 Additional information: 1 2 Common stock outstanding January 1, 2021 was 44,000 shares and 54,000 shares were outstanding at December 31, 2021. The market price of Cullumber, Inc., stock was $16 in 2021. 3. Cash dividends of $17,130 were paid, $1,770 of which were to preferred stockholders. Compute the following measures for 2021: (Round Earnings per share to 2 decimal places, eg. 52.75. Round other answers to 1 decimal place, e.g. 52.7.) (a) Earnings per share $ (b) Price-earnings ratio (c) Payout ratio (d) Times interest earned 1.31 12.2 times 26.7 % times
The income statement for Cullumber, Inc. is as follows: CULLUMBER, INC. Income Statement For the Year Ended December 31, 2021 Sales revenue $442,000 Cost of goods sold 264,000 Gross profit 178,000 Expenses (including $19,000 interest and $36,700 income taxes) 114.000 Net income $64,000 Additional information: 1 2 Common stock outstanding January 1, 2021 was 44,000 shares and 54,000 shares were outstanding at December 31, 2021. The market price of Cullumber, Inc., stock was $16 in 2021. 3. Cash dividends of $17,130 were paid, $1,770 of which were to preferred stockholders. Compute the following measures for 2021: (Round Earnings per share to 2 decimal places, eg. 52.75. Round other answers to 1 decimal place, e.g. 52.7.) (a) Earnings per share $ (b) Price-earnings ratio (c) Payout ratio (d) Times interest earned 1.31 12.2 times 26.7 % times
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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