od to go 1 The following information applies to Acorn Construction Company (ACC): Year 1 Net sales Year 2 $811,000 $623,000 Income before interest and taxes 135,000 81,700 Net income 50,400 53,800 Interest expense 23,000 16,900 Stockholders' equity, December 31 868,000 754,000 Common stock 747,000 752,000 Preferred stock dividends 20,800 22,100 Information on the number of shares outstanding is provided below: Average number of shares outstanding Year 2 26,500 Average number of shares outstanding Year 1 36,500 Required: Compute the following ratios for ACC for Year 2 and Year 1: a. Number of times interest is earned b. Earnings per share c. Price-earnings ratio (Market prices: Year 2 $19.00 per share, Year 1 $16.50 per share) d. Return on equity e. Net margin