Problem 9-22A (Algo) Ratio analysis LO 9-3, 9-4, 9-5 Baird Companys income statement information follows: Year 3 Year 2 Net sales $ 417,000 $ 259,000 Income before interest and taxes 111,000 78,000 Net income after taxes 55,400 63,100 Interest expense 9,000 7,750 Stockholders equity, December 31 (Year 1: $196,000) 314,000 227,000 Common stock, December 31 192,500 175,000 The average number of shares outstanding was 7,700 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for Baird 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, $67 per share; Year 2, $78 per share).(Round your intermediate and final 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).)

The average number of shares outstanding was 7,700 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for Baird for Year 3 and Year 2. Number of times interest was earned. (Round your answers to 2 decimal places.) . Earnings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.) Price-earnings ratio (market prices: Year 3, $67 per share; Year 2, $78 per share).(Round your intermediate and final answers to lecimal places.) 1. Return on average equity. (Round your percentage answers to 2 decimal places. (i.e., 0.2345 should be entered as 23.45 ).) Net margin. (Round your percentage answers to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)