Vernon Companys income statement information follows.

	Year 3	Year 2
Net sales	$ 415,000	$ 256,000
Income before interest and taxes	118,000	76,000
Net income after taxes	55,160	63,000
Interest expense	8,950	7,800
Stockholders equity, December 31 (Year 1: $192,000)	312,000	235,000
Common stock, December 31	192,500	175,000

The average number of shares outstanding was 7,700 for Year 3 and 7,000 for Year 2. Required Compute the following ratios for Vernon 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, $65 per share; Year 2, $77 per share).(Round your intermediate and final answers to 2 decimal places.) d. Return on average equity. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45)) e. Net margin. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45))