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 dividend per share of common stock was $$0\mathrm{.}75$ last year and $$0\mathrm{.}40$ this year. The market value of the company$$s common stock at the end of this year was $$20.$ All of the company$$s sales are on account.

Weller Corporation

Comparative Balance Sheet

$($dollars in thousands$)$

This Year Last Year

Assets

Current assets:

Cash $ $1,120$ $ $1,280$

Accounts receivable, net $10,2008,400$

Inventory $14,00012,100$

Prepaid expenses $800580$

Total current assets $26,12022,360$

Property and equipment:

Land $10,30010,300$

Buildings and equipment, net $44,58638,468$

Total property and equipment $54,88648,768$

Total assets $ $81,006$ $ $71,128$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $20,300$ $ $18,400$

Accrued liabilities $970840$

Notes payable, short term $0120$

Total current liabilities $21,27019,360$

Long$-$term liabilities:

Bonds payable $9,2009,200$

Total liabilities $30,47028,560$

Stockholders' equity:

Common stock $2,0002,000$

Additional paid$-$in capital $4,0004,000$

Total paid$-$in capital $6,0006,000$

Retained earnings $44,53636,568$

Total stockholders' equity $50,53642,568$

Total liabilities and stockholders' equity $ $81,006$ $ $71,128$

Weller Corporation

Comparative Income Statement and Reconciliation

$($dollars in thousands$)$

This Year Last Year

Sales $ $75,000$ $ $65,000$

Cost of goods sold $42,00037,000$

Gross margin $33,00028,000$

Selling and administrative expenses:

Selling expenses $11,00010,600$

Administrative expenses $7,4006,100$

Total selling and administrative expenses $18,40016,700$

Net operating income $14,60011,300$

Interest expense $920920$

Net income before taxes $13,68010,380$

Income taxes $5,4724,152$

Net income $8,2086,228$

Dividends to common stockholders $240600$

Net income added to retained earnings $7,9685,628$

Beginning retained earnings $36,56830,940$

Ending retained earnings $ $44,536$ $ $36,568$

Required:

Compute the following financial ratios for this year:

$1.$ Times interest earned ratio.

$2.$ Debt$-$to$-$equity ratio.

$3.$ Equity multiplier.Comporetive finsncisl statements for Wel er Corporstion, a merchandsing company, for the yesr ending December $31$ appesr below.

The compony did not lasue sny new common stock during the yesr. A total of $600,000$ shors: of common stock were outstanding. The

interest rate on the bond psysble wss $10\%,$ the income tsx rate ws: $40\%,$ snd the dividend per share of common stock was $$0\mathrm{.}75$ lest

are on sccount.

wellor Corporation

Comparative Balance Shoet.

$($dollars In thousiands$)$

Required:

Compute the follawing finseisl ratios for this year:

Times interest earned ratio.

$2$ Debtro$-$equity retio.

Equity mutiplier.

$($For all requirements, round your answers to $2$ declmal places.$)$