Sokov Companys income statement information follows. The average number of shares outstanding was 9,600 for 2014 and

Sokov Company’s income statement information follows.

The average number of shares outstanding was 9,600 for 2014 and 8,000 for 2013.

Required
Compute the following ratios for Sokov for 2014 and 2013 and round the computation to two decimal points.
a. Number of times interest was earned.
b. Earnings per share based on the average number of shares outstanding.
c. Price-earnings ratio (market prices: 2014, $64 per share; 2013, $78 per share).
d. Return on average equity.
e. Netmargin.

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2014 2013 Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (2012: $200,000) Common stock, December 31 $480,000 $320,000 98,000 72,000 8,000 240,000 200,000 120,000 81,000 9,000 300,000 240,000