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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

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 700,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the companys common stock at the end of the year was $24. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 1,230 $ 1,310
Accounts receivable, net 10,200 6,500
Inventory 12,700 11,600
Prepaid expenses 780 520
Total current assets 24,910 19,930
Property and equipment:
Land 9,200 9,200
Buildings and equipment, net 44,456 39,878
Total property and equipment 53,656 49,078
Total assets $ 78,566 $ 69,008
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 19,800 $ 17,700
Accrued liabilities 930 770
Notes payable, short term 0 300
Total current liabilities 20,730 18,770
Long-term liabilities:
Bonds payable 8,700 8,700
Total liabilities 29,430 27,470
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 43,136 35,538
Total stockholders' equity 49,136 41,538
Total liabilities and stockholders' equity $ 78,566 $ 69,008

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
This Year Last Year
Sales $ 68,000 $ 64,000
Cost of goods sold 36,000 37,000
Gross margin 32,000 27,000
Selling and administrative expenses:
Selling expenses 10,900 10,500
Administrative expenses 7,100 6,300
Total selling and administrative expenses 18,000 16,800
Net operating income 14,000 10,200
Interest expense 870 870
Net income before taxes 13,130 9,330
Income taxes 5,252 3,732
Net income 7,878 5,598
Dividends to common stockholders 280 700
Net income added to retained earnings 7,598 4,898
Beginning retained earnings 35,538 30,640
Ending retained earnings $ 43,136 $ 35,538

Required:
Compute the following financial ratios for this year:

Times interest earned ratio. (Round your answer to 1 decimal place.)

Debt-to-equity ratio. (Round your answer to 2 decimal places.)

Equity multiplier. (Round your answer to 2 decimal places.)

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