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 500,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the companys common stock at the end of the year was $22. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,160		$	1,340
Accounts receivable, net		9,200			7,800
Inventory		13,400			11,900
Prepaid expenses		790			510
Total current assets		24,550			21,550
Property and equipment:
Land		9,900			9,900
Buildings and equipment, net		47,949			38,667
Total property and equipment		57,849			48,567
Total assets	$	82,399		$	70,117
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,500		$	17,700
Accrued liabilities		990			890
Notes payable, short term		0			150
Total current liabilities		21,490			18,740
Long-term liabilities:
Bonds payable		9,800			9,800
Total liabilities		31,290			28,540
Stockholders' equity:
Common stock		2,000			2,000
Additional paid-in capital		4,000			4,000
Total paid-in capital		6,000			6,000
Retained earnings		45,109			35,577
Total stockholders' equity		51,109			41,577
Total liabilities and stockholders' equity	$	82,399		$	70,117

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	72,000		$	64,000
Cost of goods sold		37,000			37,000
Gross margin		35,000			27,000
Selling and administrative expenses:
Selling expenses		11,000			10,200
Administrative expenses		6,800			6,800
Total selling and administrative expenses		17,800			17,000
Net operating income		17,200			10,000
Interest expense		980			980
Net income before taxes		16,220			9,020
Income taxes		6,488			3,608
Net income		9,732			5,412
Dividends to common stockholders		200			375
Net income added to retained earnings		9,532			5,037
Beginning retained earnings		35,577			30,540
Ending retained earnings	$	45,109		$	35,577

1.	Times interest earned ratio
2.	Debt-to-equity ratio
3.	Equity multiplier