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Incorrect. The income statement for Christensen Inc. appears below.

CHRISTENSEN INC.

Income Statement

For the Year Ended December 31 2011 Sales $399400

Cost of goods sold 225500 Gross profit 173900

Expenses (including $14000 interest and $22720 income taxes) 100900 Net income $73000 Additional information: The weighted average common shares outstanding in 2011 were 32000 shares. The market price of Christensen Inc. stock was $15 in 2011. Cash dividends of $28000 were paid $4770 of which were to preferred stockholders. Compute the following ratios for 2011. (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. 25%.)

(d) Times interest earned. (Round answer to 1 decimal place e.g. 10.5.) (a) Earnings per share $

(b) Price-earnings times

(c) Payout %

(d) Times interest earned times

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