tis Company's income statement information follows: Net sales Year 3 Income before interest and taxes $480,000 $320,000 Net income after taxes 000'86 000ʻZL Interest expense Stockholders' equity, December 31 (Year 1: $200,000) Common stock, December 31 000'6 000'00 000's 240,000 000'00z he average number of shares outstanding was 9,600 for Year 3 and 8,000 for Year 2 Required Compute the following ratios for Otis for Year 3 and Year 2. Number of times interest was earned. (Round your answers to 2 decimal places.) D. 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, $64 per share, Year 2, $78 per share). (Round intermediate calculations ar 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)) Year 3 Year 2 times times a. Times interest earned b.Earnings per share times times c. Price-earnings ratio % d. Return on average equity e. Net margin %

tis Company's income statement information follows: Net sales Year 3 Income before interest and taxes $480,000 $320,000 Net income after taxes 000'86 000ʻZL Interest expense Stockholders' equity, December 31 (Year 1: $200,000) Common stock, December 31 000'6 000'00 000's 240,000 000'00z he average number of shares outstanding was 9,600 for Year 3 and 8,000 for Year 2 Required Compute the following ratios for Otis for Year 3 and Year 2. Number of times interest was earned. (Round your answers to 2 decimal places.) D. 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, $64 per share, Year 2, $78 per share). (Round intermediate calculations ar 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)) Year 3 Year 2 times times a. Times interest earned b.Earnings per share times times c. Price-earnings ratio % d. Return on average equity e. Net margin %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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