Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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:
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: 3192,000) Common stock, December 31 Year $410.000 119,000 55,000 9,400 295,000 195,000 Yer 2 $260,000 79,000 63,100 7.900 233,000 175.000 The average number of shares outstanding was 7,800 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for 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. $66 per share Yout 2.574 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. (0.2345 shd be entered as 23.45).) e. Net margin. (Round your percentage answers to 2 decimal places. (le, 0.2345 should be entered as 23.45)) Years times Year 2 simes a. Times interesteamed b. Earnings por share Price-camins ratio d. Return on average equity . Net margin times times X %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started