Question 11 Your answer is partially correct. Try again. The income statement fo

Question

Question 11 Your answer is partially correct. Try again. The income statement for Sutherland, Inc., appears below. SUTHERLAND,INC. Income Statement For the Year Ended December 31, 2017 Net sales Cost of goods sold Gross profit Expenses (including $16,000 interest and $24,000 income $400,000 230,000 170,000 105,000 $ 65,000 taxes) Net income Additional information: 1. The weighted-average common shares outstanding in 2017 were 30,000 shares. 2. The market price of Sutherland, Inc. stock was $13 in 2017. 3. Cash dividends of $26,000 were paid, $5,000 of which were to preferred stockholders Compute the following ratios for 2017. (Round Earnings per share to 2 decimal places, e.g. 1.75, and all other answers to 1 decimal place, e.g. 6.8 or 6.896 ? ? Earnings per share $2 00 Price-earnings ratio 6 times Payout ratio Times interest earned 656 times

Explanation / Answer

payout ratio = Total dividend paid / Net income

                     = 26000 / 65000

                     = .40 or 40%

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.