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 The average number of shares outstanding was 7,900 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for Vernon 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, $68 per share; Year 2, $75 per share). Note: Round your answer to 2 decimal places. d. Return on average equity. a Times interest earned b. Earnings per share c. Price-earnings ratio d. Return on average equity Year 3 Year 3 $ 415,000 118,000 55,400 9,000 times 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). times % 296,000 197,500 Year 2 times Year 2 $ 270,000 78,000 62,100 7,950 times % 237,000 175,000

The average number of shares outstanding was 7.900 for Year 3 and 7.000 for Year 2 . Required Compute the following ratios for Vernon 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,$68 per share; Year 2, $75 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 )