Question

Here is the income statement for Splish Brothers Inc. SPLISH BROTHERS INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $442,900 Cost of goods sold 258,800 Gross profit 184,100 Expenses (including $16,100 interest and $21,600 income taxes) 74,700 Net income $ 109,400 Additional information:_______.

1. Common stock outstanding January 1, 2020, was 22,500 shares, and 35,800 shares were outstanding at December 31, 2020.
2. The market price of Splish Brothers stock was $15 in 2020.
3. Cash dividends of $23,600 were paid, $5,500 of which were to preferred stockholders. Compute the following measures for 2020.

Answer 1

the ratios are missing, so I looked for similar questions:

Earnings per share (EPS) = (net income - preferred dividends) / average outstanding stocks = ($109,400 - $5,500) / [(22,500 + 35,800) / 2] = $103,900 / 29,150 stocks = $3.5643 ≈ $3.56

Price earnings ratio (P/E) = stock price / EPS = $15 / $3.56 = 4.21 times

Payout ratio = dividend per share / EPS = ($18,100 / 29,150) / $3.5643 = $0.6209 / $3.5643 = 17.42%

Times interest earned = EBIT / interest expense = $147,100 / $16,100 = 9.14 times