Here is the income statement for Larkspur, Inc. LARKSPUR, INC. Income Statement For the Year Ended December 31, 2022 Sales revenue   $443,400 Cost of goods sold   224,700 Gross profit   218,700 Expenses (including $16,700 interest and $24,600 income taxes)   87,600 Net income   $ 131,100 Additional information: 1.   Common stock outstanding January 1, 2022, was 27,600 shares, and 36,700 shares were outstanding at December 31, 2022. 2.   The market price of Larkspur stock was $15 in 2022. 3.   Cash dividends of $22,700 were paid, $6,900 of which were to preferred stockholders. Compute the following measures for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%) (a)   Earnings per share   $enter earnings per share in dollars    (b)   Price-earnings ratio   enter price-earnings ratio in times  times (c)   Payout ratio   enter payout ratio in percentages  % (d)   Times interest earned   enter times interest earned  times

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Here is the income statement for Larkspur, Inc.

LARKSPUR, INC.
Income Statement
For the Year Ended December 31, 2022
Sales revenue
 
$443,400
Cost of goods sold
 
224,700
Gross profit
 
218,700
Expenses (including $16,700 interest and $24,600 income taxes)
 
87,600
Net income
 
$ 131,100


Additional information:

1.   Common stock outstanding January 1, 2022, was 27,600 shares, and 36,700 shares were outstanding at December 31, 2022.
2.   The market price of Larkspur stock was $15 in 2022.
3.   Cash dividends of $22,700 were paid, $6,900 of which were to preferred stockholders.


Compute the following measures for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)

(a)   Earnings per share  
$enter earnings per share in dollars 
 
(b)   Price-earnings ratio  
enter price-earnings ratio in times
 times
(c)   Payout ratio  
enter payout ratio in percentages
 %
(d)   Times interest earned  
enter times interest earned
 times
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