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Finch Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1:

Finch Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $193,000) Common stock, December 31 Year 3 $ 413,000 114,000 Year 2 $ 251,000 75,000 55,640 62,800 9,450 7,750 309,000 227,000 197,500 172,500 The average number of shares outstanding was 7,900 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Finch for Year 3 and Year 2. a. Number of times interest was earned. Note: Round your answer to 2 decimal places. b. Earnings per share based on the average number of shares outstanding. Note: Round your answer to 2 decimal places. c. Price-earnings ratio (market prices: Year 3, $66 per share; Year 2, $74 per share). Note: Round your answer to 2 decimal places. d. Return on average equity. Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45). e. Net margin. Note: Round your percentage answer to 2 decimal places (for example, 0.2345 should be entered as 23.45). a. Times interest earned b. Earnings per share c. Price-earnings ratio d. Return on average equity e. Net margin Year 3 Year 2 times times times times % % % %

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