SKYSONG, INC.Income StatementFor the Year Ended December 31, 2022Sales revenue $404,100Cost of goods sold 234,000Gross profit 170,100Expenses (including $16,700 interest and $26,400 income taxes) 83,500Net income $ 86,600Additional information:1. Common stock outstanding January 1, 2022, was 24,700 shares, and 37,100 shares were outstanding at December 31, 2022.2. The market price of Skysong stock was $14 in 2022.3. Cash dividends of $22,900 were paid, $4,900 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

Earning per share is the portion of a company's profit allocated to each outstanding share of common…

Answered: Common stock outstanding January 1,…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 21E

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SKYSONG, INC. Income Statement For the Year Ended December 31, 2022
Sales revenue		$404,100
Cost of goods sold		234,000
Gross profit		170,100
Expenses (including $16,700 interest and $26,400 income taxes)		83,500
Net income		$ 86,600

Additional information:

1.		Common stock outstanding January 1, 2022, was 24,700 shares, and 37,100 shares were outstanding at December 31, 2022.
2.		The market price of Skysong stock was $14 in 2022.
3.		Cash dividends of $22,900 were paid, $4,900 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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