Here is the income statement for Sunland, Inc.Sunland, Inc.Income StatementFor the Year Ended December 31, 2022Net sales $430,000Cost of goods sold 200,000Gross profit 230,000Expenses (including $10,000 interest and $23,000 income taxes) 103,000Net income $ 127,000Additional information:1. Common stock outstanding January 1, 2022, was 27,750 shares, and 31,750 shares were outstanding at December 31, 2022. (Use a simple average for weighted-average.)2. The market price of Sunland stock was $28 on December 31, 20223. Cash dividends of $28,140 were declared and paid.Compute the following measures for 2022. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)(a) Earnings per share $enter a dollar amount rounded to 2 decimal places (b) Price-earnings ratio enter a number of times rounded to 1 decimal placetimes(c) Payout ratio enter percentages rounded to 1 decimal place%(d) Times interest earned enter a number of times rounded to 1 decimal placetimes

Accounting ratios are the set of financial ratios which shows the efficiency, activity and…

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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 Sunland, Inc.

Sunland, Inc. Income Statement For the Year Ended December 31, 2022
Net sales		$430,000
Cost of goods sold		200,000
Gross profit		230,000
Expenses (including $10,000 interest and $23,000 income taxes)		103,000
Net income		$ 127,000

Additional information:

1.		Common stock outstanding January 1, 2022, was 27,750 shares, and 31,750 shares were outstanding at December 31, 2022. (Use a simple average for weighted-average.)
2.		The market price of Sunland stock was $28 on December 31, 2022
3.		Cash dividends of $28,140 were declared and paid.

Compute the following measures for 2022. (Round Earnings per share to 2 decimal places, e.g. 1.65, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

(a)	Earnings per share	$enter a dollar amount rounded to 2 decimal places
(b)	Price-earnings ratio	enter a number of times rounded to 1 decimal place	times
(c)	Payout ratio	enter percentages rounded to 1 decimal place	%
(d)	Times interest earned	enter a number of times rounded to 1 decimal place	times

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