930 930 Interest expense 5,170 2,068 3,102 300 16,670 6,668 10,002 240 Net income before taxes hcome taxes Net income Dividends to common. stockholders Net income added to retained earnings Beginning retained earnings 9,762 33,342 $43,104 2,802 30,540 $33,342 Ending retained earnings Required: Compute the following financial ratios for this year 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. (For all requirements, round your answers to 2 decimal places.) Times interest earned ratio 1. Debt-to-equity ratio Equity multiplier 2. Total stockholders' equity 49,104 39,342 Total liabilities and stockholders' equity $79,354 $68,352 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $72,000 37,000 $64,000 41,000 23,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 35,000 10,200 6,700 16,900 6,100 930 10,500 6,900 17,400 17,600 930 5,170 2,068 3,102 16,670 Income taxes 6,668 10,002 Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 240 300 9,762 33,342 $43,104 2,802 30,540 $33,342 Accounts receivable, net 8,000 11,900 530 9,900 Inventory 13,700 Prepaid expenses Yotal current assets Property and equipment: Land 770 25,530 21,680 9,600 44, 224 53,824 $79,354 9,600 Buildings and equipment, net Total property and equipment 37,072 46,672 $68,352 Total assets Liabilities and Stockholders' Equity Current liabilities: $18,800 770 $20,000 Accounts payable Accrued liabilities 950 140 Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: 20,950 19,710 9,300 29,010 9,300 30,250 2,000 4,e00 6,000 33,342 2,000 4,000 Common stock Additional paid- in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $79,354 6.000 43,104 49,104 39,342 $68,352 Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below The company did not issue any new common stock during the year, A total of 600,000 shares of common stock were outstanding. The interest rate on the bond payable was 10 % , the income tax rate was 40 % , and the dvidend per share of common stock was $0.75 fast year and $0.40 this year. The market value of the company's common stock at the end of the year was $22. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: $1,160 9,900 13,700 770 $1,250 8,000 11,900 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 530 21,680 25,530 Property and equipment: Land Buildings and equipment, net Total property and equipment 9,600 37,072 9,600 44,224 46,672 53,824 $68,352 $79,354 Total assets Liabilities and Stockholders Equity Current liabilities: $18,800 $20,000 Accounts payable Accrued liabilities 950 770