Vernon Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Year 3 $427, 000 114,000 Year 2. $265, 000 55, 080 9,050 296, 000 197, 500 83, 600 62, 100 7, 500 231, 000 172, 500 Interest expense Stockholders' equity. December 31 (Year 1: $194, 000) Conmon stock, Decenber 31 The average number of shares outstanding was 7,900 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Vernon for Year 3 and Year 2. a. Number of times interest was eamed. (Round your answers to 2 decimal places.) b. Eamings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices: Year 3, $69 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. (l.e., 0.2345 should be entered as 23.45).) e. Net margin. (Round your percentage answers to 2 decimal places. (l.e., 0.2345 should be entered as 23.45).) Year 3 Year 2 times aTimes nterest eamed b. Eunings per share c Price-eamings ratio d Returni on average equity e Net margin times times times Vernon Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Year 3 $427, 000 114,000 Year 2. $265, 000 55, 080 9,050 296, 000 197, 500 83, 600 62, 100 7, 500 231, 000 172, 500 Interest expense Stockholders' equity. December 31 (Year 1: $194, 000) Conmon stock, Decenber 31 The average number of shares outstanding was 7,900 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Vernon for Year 3 and Year 2. a. Number of times interest was eamed. (Round your answers to 2 decimal places.) b. Eamings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices: Year 3, $69 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. (l.e., 0.2345 should be entered as 23.45).) e. Net margin. (Round your percentage answers to 2 decimal places. (l.e., 0.2345 should be entered as 23.45).) Year 3 Year 2 times aTimes nterest eamed b. Eunings per share c Price-eamings ratio d Returni on average equity e Net margin times times times Vernon Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Year 3 $427, 000 114,000 Year 2. $265, 000 55, 080 9,050 296, 000 197, 500 83, 600 62, 100 7, 500 231, 000 172, 500 Interest expense Stockholders' equity. December 31 (Year 1: $194, 000) Conmon stock, Decenber 31 The average number of shares outstanding was 7,900 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Vernon for Year 3 and Year 2. a. Number of times interest was eamed. (Round your answers to 2 decimal places.) b. Eamings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices: Year 3, $69 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. (l.e., 0.2345 should be entered as 23.45).) e. Net margin. (Round your percentage answers to 2 decimal places. (l.e., 0.2345 should be entered as 23.45).) Year 3 Year 2 times aTimes nterest eamed b. Eunings per share c Price-eamings ratio d Returni on average equity e Net margin times times times Vernon Company's income statement information follows: Net sales Income before interest and taxes Net income after taxes Year 3 $427, 000 114,000 Year 2. $265, 000 55, 080 9,050 296, 000 197, 500 83, 600 62, 100 7, 500 231, 000 172, 500 Interest expense Stockholders' equity. December 31 (Year 1: $194, 000) Conmon stock, Decenber 31 The average number of shares outstanding was 7,900 for Year 3 and 6,900 for Year 2. Required Compute the following ratios for Vernon for Year 3 and Year 2. a. Number of times interest was eamed. (Round your answers to 2 decimal places.) b. Eamings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices: Year 3, $69 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. (l.e., 0.2345 should be entered as 23.45).) e. Net margin. (Round your percentage answers to 2 decimal places. (l.e., 0.2345 should be entered as 23.45).) Year 3 Year 2 times aTimes nterest eamed b. Eunings per share c Price-eamings ratio d Returni on average equity e Net margin times times times