Problem 9-22A (Algo) Ratio analysis LO 9-3, 9-4, 9-5 Rundle 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 $423,000 Year 2 $269,000 82,000 112,000 55,160 62,900 9,050 7,500 307,000 236,000 195,000 175,000 The average number of shares outstanding was 7,800 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for Rundle 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, $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).) a Times interest eamed Year 3 Year 2 times times b. Earnings per share Price-earnings ratio times times d Return on average equity % % eNet margin % %