Chapter 13 Exercise Saved 1 Adams Company's income statement information follows. Year 3 $416,000 111,000 Year 2 $ 268,000 77,000 50 points Skipped Book Ask References Not sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 11 $192,000) Common stock, December 31 The average number of shares outstanding was 7,800 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for Adams for Year 3 and Year 2. a. Number of times interest was earned. (Round your answers to 2 decimal places.) 55,560 63,800 8,950 7,900 307,000 228,000 175,000 195,000 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, $66 per share; Year 2, $74 per share) (Round your intermediate and final answers to 2 decimal places.) d. Return on average equity. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45)) e. Net margin. (Round your answers to 2 decimal places. (.e., .2345 should be entered as 23.45)) Mc Graw Hill a. Times interest earned Year 3 Year 2 times times b. Earnings per share c. Price-earnings ratio. times times d. Return on average equity % e. Net margin % % Prey 1 of 1 Next >