Rundle Companys income statement information follows:

	2018				2017
Net sales	$	425,000			$	256,000
Income before interest and taxes		119,000				76,000
Net income after taxes		55,320				62,300
Interest expense		9,050				7,700
Stockholders equity, December 31 (2016: $193,000)		302,000				230,000
Common stock, December 31		206,000				227,000

The average number of shares outstanding was 7,800 for 2018 and 6,940 for 2017.

Required

Compute the following ratios for Rundle for 2018 and 2017.

1. Number of times interest was earned. (Round your answers to 2 decimal places.)

2. Earnings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.)

3. Price-earnings ratio (market prices: 2018, $65 per share; 2017, $77 per share). (Do not round intermediate calculations. Round your answers to 2 decimal places.)

4. Return on average equity. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

5. Net margin. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).

2018 2017 times times a. Interest earned b. Earnings per share c. Price-earnings ratio d. Return on equity e. Net margin times times % % % %