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Solomon 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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Solomon 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: $198.000) Common stock, December 31 Year 3 $424,000 114,000 55,880 9,150 297,000 192,500 Year 2 $256,000 83,000 63,400 7,700 242,000 172,500 The average number of shares outstanding was 7,700 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Solomon 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. $73 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. (i.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).) Year 3 Year 2 times times a. Times interest earned b. Earnings per share c. Price-earnings ratio d. Return on average equity e. Net margin times % % times % %

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