The computational questions must be submitted in excel. You must show you work for credit consideration.

1. The following information applies to Acorn Construction Company (ACC):

	Year 2	Year 1
Net sales	$811,000	$623,000
Income before interest and taxes	135,000	81,700
Net income	50,400	53,800
Interest expense	23,000	16,900
Stockholders' equity, December 31	868,000	754,000
Common stock	747,000	752,000
Preferred stock dividends	20,800	22,100

Information on the number of shares outstanding is provided below:

Average number of shares outstanding Year 2	26,500
Average number of shares outstanding Year 1	36,500

Required:

Compute the following ratios for ACC for Year 2 and Year 1:

a. Number of times interest is earned

b. Earnings per share

c. Price-earnings ratio (Market prices: Year 2 $19.00 per share, Year 1 $16.50 per share)

d. Return on equity

e. Net margin