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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