Problem 9-22A (Algo) Ratio analysis LO 9-3, 9-4, 9-5 Rooney 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: $199,000) Common stock, December 31 Year 3 $410,000 119,000 55,640 Year 2 $268,000 76,000 63,100 8,850 7,550 229,000 309,000 197,500 175,000 The average number of shares outstanding was 7,900 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for Rooney 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). (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).) a. Times interest earned Year 3 Year 2 times times b. Earnings per share c. Price-earnings ratio times times d. Return on average equity % % e. Net margin % %