ACC 280 Exercise 15-9 The income statement for Christensen, Inc., appears below
XACC 280 Exercise 15-9 The income statement for Christensen, Inc., appears below
Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008).
Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)
Homework Help XACC 280 E15-9 The income statement for Christensen, Inc
Homework tutorial ACC 280 E15-9 The income statement for Christensen, Inc
Homework solution XACC 280 E15-9 The income statement for Christensen, Inc
Exercise 15-9
Exercise 15-9 The income statement for Christensen, Inc., appears below
CHRISTENEN, INC. CLICK HERE FOR SOLUTION
Income Statement
For the Year Ended December 31, 2011
Sales $400,000
Cost of goods sold 230,000
Gross profit 170,000
Expenses ( include $16,000 interest & $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 2011.
a. Earnings per share.
b. Price-earnings
c. Payout.
d. Times interest earned
