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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

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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 company's common stock at the end of this year was $23. All of the company's sales are on account Welter Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,140 $ 1,300 Accounts receivable, net 9,200 7,000 Inventory 13,800 12,200 Prepaid expenses 620 640 Total current assets 24,760 21,140 Property and equipnent: Land 9,900 9900 Buildings and equipment, net 47,226 38,828 Total property and equipment 57, 126 48,728 Total assets $81,886 $69,868 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $18,700 $17,500 Accrued liabilities 960 830 Notes payable, short term 200 Total current liabilities 19,660 18,530 Long-term liabilities: Bonds payable 9,200 9,200 Total liabilities 28,860 27.730 Stockholders' equity: Common stock 2,000 2.000 Additional paid-in capital 4, eee 4,000 Total paid-in capital 6,000 6.ee Retained earnings 47, 026 36.138 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 47,026 53,026 $81,886 36,138 42,138 $69,868 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $71,000 $64,000 Cost of goods sold 34,000 37,800 Gross margin 37, eee 27,000 Selling and administrative expenses Selling expenses 10,700 10,500 Administrative expenses 6,900 6,500 Total selling and administrative expenses 17,600 17,000 Net operating income 19,400 10,000 Interest expense 920 920 Net income before taxes 18,480 9,880 Income taxes 7,392 3,532 Net income 11,088 5,448 Dividends to common stockholders 200 250 Net income added to retained earnings 10,888 5,198 Beginning retained earnings 36,138 30,940 Ending retained earnings $47,026 $36,138 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.)

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