Earnings ratios

Here is the income statement for Swayze, Inc.

Sales $400,000
Cost of Goods Sold 230,000
Gross profit 170,000
Expenses (Including $16,000 interest and $24,000 income taxes) 90,000
Net income $80,000

Additional information:
1. Common stock outstanding January 1, 2010 was 30,000 shares, and 40,000 shares were…