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$$s common stock at the end of this year was $$24.$ 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 $ $1,240$ $ $1,220$

Accounts receivable, net $10,2007,200$

Inventory $13,10010,600$

Prepaid expenses $700640$

Total current assets $25,24019,660$

Property and equipment:

Land $9,7009,700$

Buildings and equipment, net $46,41438,982$

Total property and equipment $56,11448,682$

Total assets $ $81,354$ $ $68,342$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $20,200$ $ $18,100$

Accrued liabilities $1,020820$

Notes payable, short term $0100$

Total current liabilities $21,22019,020$

Long$-$term liabilities:

Bonds payable $8,8008,800$

Total liabilities $30,02027,820$

Stockholders' equity:

Common stock $2,0002,000$

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

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

Retained earnings $45,33434,522$

Total stockholders' equity $51,33440,522$

Total liabilities and stockholders' equity $ $81,354$ $ $68,342$

Weller Corporation

Comparative Income Statement and Reconciliation

$($dollars in thousands$)$

This Year Last Year

Sales $ $72,000$ $ $64,000$

Cost of goods sold $34,00039,000$

Gross margin $38,00025,000$

Selling and administrative expenses:

Selling expenses $11,40010,900$

Administrative expenses $7,3006,500$

Total selling and administrative expenses $18,70017,400$

Net operating income $19,3007,600$

Interest expense $880880$

Net income before taxes $18,4206,720$

Income taxes $7,3682,688$

Net income $11,0524,032$

Dividends to common stockholders $240450$

Net income added to retained earnings $10,8123,582$

Beginning retained earnings $34,52230,940$

Ending retained earnings $ $45,334$ $ $34,522$

Required:

Compute the following financial ratios for this year:

$1.$ Times interest earned ratio.

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

$3.$ Equity multiplier.