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.FInd the following:A.) Payout RatioB.) Times interest earned

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Description: 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

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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 19E: Lyon Company shows the following condensed income statement information for the year ended December...

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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.

FInd the following:

A.) Payout Ratio

B.) Times interest earned

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