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Jordan 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:
Jordan 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: $193,000) Common stock, December 31 Year 3 $416,000 114,000 55, 240 9,000 302,000 195,000 Year 2 $ 255,000 85,000 63,700 7,500 237,000 172,500 The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Jordan for Year 3 and Year 2. a. Num! 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 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 a. Times interest earned times times times times b. Earnings per share c. Price-earnings ratio d. Return on average equity e. Net margin % % % %
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