Question
Rundle Companys income statement information follows. Year 3 Year 2 Net sales $ 419,000 $ 258,000 Income before interest and taxes 116,000 83,000 Net income
Rundle Companys income statement information follows.
Year 3 | Year 2 | |
---|---|---|
Net sales | $ 419,000 | $ 258,000 |
Income before interest and taxes | 116,000 | 83,000 |
Net income after taxes | 55,640 | 62,500 |
Interest expense | 9,150 | 7,600 |
Stockholders equity, December 31 (Year 1: $195,000) | 307,000 | 242,000 |
Common stock, December 31 | 197,500 | 175,000 |
The average number of shares outstanding was 7,900 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, $65 per share; Year 2, $74 per share).(Round your intermediate and final answers to 2 decimal places.) d. Return on average equity. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45)) e. Net margin. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45))
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