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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:

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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: $190,000) Common stock, December 31 Year 3 $416,000 112,000 55,960 8,650 305,000 192,500 Year 2 $258,000 84,000 62,700 7.450 232,000 172,500 The average number of shares outstanding was 7700 for Year 3 and 6,900 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, $68 per share: Year 2, $77 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. (.e., 0.2345 should be entered as 23,45).) e. Net margin. (Round your percentage answers to 2 decimal places. (l.e., 0.2345 should be entered as 23.45).) Year 3 times Year 2 times a. Times interest eamed b. Earnings per share c. Price-earnings ratio d. Return on average equity e. Nel margin times times % % % %

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