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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: $194,000) Common stock, December 31 Year 3 $411,000 117,000 55,000 8,700 299,000 195,000 Year 2 $267,000 84, eee 62,400 7,700 227,000 172,500 ped ok + The average number of shares outstanding was 7,800 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. $66 per share: Year 2. $73 per share).(Round your intermediate and fine decimal places.) d. Return on average equity. (Round your percentage answers to 2 decimal places. (i.e., 0.2345 should be entered e. Net margin. (Round your percentage answers to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) Year 3 times Year 2 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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