Baird Companys income statement information follows: Year 3...
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Accounting
Baird Companys income statement information follows:
Year 3
Year 2
Net sales
$
415,000
$
260,000
Income before interest and taxes
117,000
83,000
Net income after taxes
55,080
63,800
Interest expense
8,700
7,900
Stockholders equity, December 31 (Year 1: $198,000)
303,000
240,000
Common stock, December 31
194,750
173,750
The average number of shares outstanding was 7,790 for Year 3 and 6,950 for Year 2.
Required Compute the following ratios for Baird for Year 3 and Year 2.
a. Number of times interest was earned. (Round your answers to 2 decimal places.)b. Earnings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.)c. Price-earnings ratio (market prices: Year 3, $68 per share; Year 2, $73 per share). (Do not round intermediate calculations. Round your answers to 2 decimal places.)d. Return on average equity. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).)e. Net margin. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).)
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