Here is the income statement for Myers, Inc.MYERS, INC.Income StatementFor the Year Ended December 31, 2022Net sales $400,000Cost of goods sold 230,000Gross profit 170,000Expenses (including $16,000 interest and $24,000 income taxes) 98,000Net income $ 72,000Additional information:1. Common stock outstanding January 1, 2022, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2022. (Use a simple average for weighted-average.)2. The market price of Myers stock was $14 on December 31, 2022.3. Cash dividends of $21,000 were declared and paid.Compute the following measures for 2022. (Round earnings per share to 2 decimal places, e.g. 1.83 and all answers to 1 decimal places, e.g. 1.8 or 2.5%)(a) Earnings per share (b) Price-earnings ratio times(c) Payout ratio %(d) Times interest earned

Earnings Per Share = Earnings Available for Common Stockholders / Weighted Average No. of Shares…

Answered: Compute the following measures for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Here is the income statement for Myers, Inc.

MYERS, INC. Income Statement For the Year Ended December 31, 2022
Net sales		$400,000
Cost of goods sold		230,000
Gross profit		170,000
Expenses (including $16,000 interest and $24,000 income taxes)		98,000
Net income		$ 72,000

Additional information:

1.		Common stock outstanding January 1, 2022, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2022. (Use a simple average for weighted-average.)
2.		The market price of Myers stock was $14 on December 31, 2022.
3.		Cash dividends of $21,000 were declared and paid.

Compute the following measures for 2022. (Round earnings per share to 2 decimal places, e.g. 1.83 and all answers to 1 decimal places, e.g. 1.8 or 2.5%)

(a)	Earnings per share
(b)	Price-earnings ratio	times
(c)	Payout ratio	%
(d)	Times interest earned

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