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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: $194,000) Connon stock, December 31 Year 3 5422,000 110,000 55,800 9, 150 301, 000 195,000 Year 2 $265,000 80,000 62,900 7,800 231,000 175,000 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, $64 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. (le, 0.2345 should 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). B The average number of shares outstanding was 7,800 for Year 3 and 7000 for Year 2. Required Compute the following ratios for Rundle for Year 3 and Year 2 a. Number of times interest was eamed (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. $64 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. (.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).) P Year 3 Year 2 times times a Times interesteamed b. Earrings per share c. Price-earrings ratio d. Return on average equity e. Nietmargin times times 9 96

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