Here is the income statement for Teal Mountain Inc.TEAL MOUNTAIN INC.Income StatementFor the Year Ended December 31, 2020Sales revenue $402,900Cost of goods sold 256,700Gross profit 146,200Expenses (including $10,200 interest and $29,600 income taxes) 89,200Net income $ 57,000Additional information:1. Common stock outstanding January 1, 2020, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2020.2. The market price of Teal Mountain stock was $15 in 2020.3. Cash dividends of $24,700 were paid, $6,500 of which were to preferred stockholders.Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)(a) Earnings per share $enter a dollar amount (b) Price-earnings ratio enter Price-earnings ratio in times times(c) Payout ratio enter percentages %(d) Times interest earned enter Times interest earned times

Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Answered: Here is the income statement for Teal…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Here is the income statement for Teal Mountain Inc.

TEAL MOUNTAIN INC. Income Statement For the Year Ended December 31, 2020
Sales revenue		$402,900
Cost of goods sold		256,700
Gross profit		146,200
Expenses (including $10,200 interest and $29,600 income taxes)		89,200
Net income		$ 57,000

Additional information:

1.		Common stock outstanding January 1, 2020, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2020.
2.		The market price of Teal Mountain stock was $15 in 2020.
3.		Cash dividends of $24,700 were paid, $6,500 of which were to preferred stockholders.

Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)

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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions