Question
3 Stuart Company's Income statement Information follows: 6.68 points Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity,
3 Stuart Company's Income statement Information follows: 6.68 points Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $194,000) Common stock, December 31 Year 3 $425,000 116,000 Year 2 $270,000 76,000 55,320 62,100 8,850 7,900 310,000 229,000 195,000 172,500 eBook Print References The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2 Required Compute the following ratios for Stuart for Year 3 and Year 2 a. Number of times interest was eamed. (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-eamings ratio (market prices: Year 3, $64 per share, Year 2, $76 per share) (Round your Intermediate and final answers to- decimal places.) d. Return on average equity. (Round your percentage answers to 2 decimal places. (1.e., 0.2345 should be entered as 23.45).) e. Net margin (Round your percentage answers to 2 decimal places. (l.e., 0.2345 should be entered as 23.45).) Times interest eamed Year times times b Earnings per share ePrice-eamings ratio times times d Retum on average equity Net margin "
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started