9-22A (Algo) Ratio analysis LO 9-3, 9-4, 9-5 Benson Company's income statement information follows: Year 3 $417,000 Year 2 $260,000 Net sales Income before interest and taxes i Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $199,000) Common stock, December 31 111,000 82,000 55,560 62,900 8,650 7,600 313,000 244,000 195,000 175,000 The average number of shares outstanding was 7,800 for Year 3 and 7,000 for Year 2 Required Compute the following ratios for Benson 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, $77 per share) (Round your intermediate and final 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).) The average number of shares outstanding was 7,800 for Year 3 and 7,000 for Year 2 Required Compute the following ratios for Benson 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, $77 per share). (Round your intermediate and final 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).) a Times interest eamed b Earnings per share Year 3 Year 2 times times c Price-earnings ratio times times d Return on average equity % % eNet margin % %