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Required Compute the following ratios for Solomon for Year 3 and Year 2 a. Number of times interest was earned. (Round your answers to 2

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Required Compute the following ratios for Solomon 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. (l.e., 0.2345 should be entered as 23.45).) e. Net margin. (Round your percentage answers to 2 decimal places. (.e., 0.2345 should be entered as 23.45).) Year Year 2 times times a Times interest earned b. Earnings per share o Price earnings ratio d. Return on average equity e. Net margin times % times % % % Solomon 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: $200,000) Common stock, December 31 Year 3 $ 419,000 112,000 55,080 9,400 309,000 195,000 Year 2 $259,000 81,000 63,500 7,600 237,000 175,000 The average number of shares outstanding was 7,800 for Year 3 and 7,000 for Year 2

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