Problem 9-22A (Algo) Ratio analysis LO 9-3, 9-4, 9-5 Solomon Company's income statement information follows: Net sales Incone before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $194,000) Connon stock, December 31 Year 3 $425,000 113,000 55,240 8,700 308,000 195,000 Year 2 $254,000 80,000 63,000 7,709 227,000 172,500 The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2 Required Compute the following ratlos for Solomon for Year 3 and Year 2. a. Number es 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, $6B por share; Year 2, $77 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. (..0.2345 should be entered as 23.45).) Year 3 times Year 2 times times a Times interest eamed Emmings per share Prio-samnings ratio d. Return on average equity Netmargin times % %