Baird Companys income statement information follows: Year 3 Year 2 ...
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Accounting
Baird Companys income statement information follows:
| Year 3 | Year 2 | |
|---|---|---|
| Net sales | $ 421,000 | $ 265,000 |
| Income before interest and taxes | 120,000 | 76,000 |
| Net income after taxes | 55,640 | 63,600 |
| Interest expense | 9,250 | 7,650 |
| Stockholders equity, December 31 (Year 1: $193,000) | 308,000 | 245,000 |
| Common stock, December 31 | 195,000 | 172,500 |
The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2.
Required
Compute the following ratios for Baird for Year 3 and Year 2.
a.Number of times interest was earned.
Note: Round your answer to 2 decimal places.
b.Earnings per share based on the average number of shares outstanding.
Note: Round your answer to 2 decimal places.
c.Price-earnings ratio (market prices: Year 3, $65 per share; Year 2, $77 per share).
Note: Round your answer to 2 decimal places.
d.Return on average equity.
Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45).
e. Net margin.
Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45).
The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Baird for Year 3 and Year 2. a. Number of times interest was earned. Note: Round your answer to 2 decimal places. b. Earnings per share based on the average number of shares outstanding. Note: Round your answer to 2 decimal places. c. Price-earnings ratio (market prices: Year 3, \$65 per share; Year 2, \$77 per share). Note: Round your answer to 2 decimal places. d. Return on average equity. Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45 e. Net margin. Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45
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