Problem 9-22A (Algo) Ratio analysis LO 9-3, 9-4, 9-5 Franklin 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: $197.000) Common stock, December 31 Year 3 $429,000 116,000 55,160 8,950 297,000 195,000 Year 2 $260,000 78,000 62,400 7,800 245,000 175,000 The average number of shares outstanding was 7,800 for Year 3 and 7,000 for Year 2 Required Compute the following ratios for Franklin 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, $66 per share; Year 2, $77 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. (.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).) Year 3 times Year 2 times a. Times interest earned b. Esmings per share c. Price-earnings ratio d. Return on average equity e. Net margin times timos % % % %