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The following information from the accounting records of Jenning Company are available to you: Year 3 Year 2 Year 1 Net sales $427,000 $254,000 Income
The following information from the accounting records of Jenning Company are available to you: | ||||||||
Year 3 | Year 2 | Year 1 | ||||||
Net sales | $427,000 | $254,000 | ||||||
Income before interest and taxes | $114,000 | $80,000 | ||||||
Net income after taxes | $55,480 | $63,000 | ||||||
Interest expense | $9,500 | $7,600 | ||||||
Stockholders' equity, December 31 | $295,000 | $229,000 | $196,000 | |||||
Common stock, December 31 | $197,500 | $175,000 | ||||||
Average # of of shares outstanding | 7,900 | 7,000 | ||||||
Market price per share, December 31 | $67 | $74 | ||||||
Required: | Compute the following for Fanning Company for both Years 3 and 2 | |||||||
a) | Number of times interest earned | |||||||
b) | Earnings per share based on average number of shares outstanding | |||||||
c) | Price-earnings ratio | |||||||
d) | Return on average equity | |||||||
e) | Net margin (i.e. Return on sales) |
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