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  3. net sales $ 425,000 $ 256,000 income...

Net sales $ 425,000 $ 256,000 Income...

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Accounting

Net sales $ 425,000 $ 256,000
Income before interest and taxes 114,000 81,000
Net income after taxes 55,400 63,200
Interest expense 9,000 7,950
Stockholders equity, December 31 (Year 1: $196,000) 295,000 245,000
Common stock, December 31 194,000 173,500

The average number of shares outstanding was 7,760 for Year 3 and 6,940 for Year 2.

Required Compute the following ratios for Zachary 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, $65 per share; Year 2, $76 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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