Net sales	$	425,000			$	256,000
Income before interest and taxes		114,000				81,000
Net income after taxes		55,400				63,200
Interest expense		9,000				7,950
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).)