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$$s common stock at the end of this year was $$28.$ 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 $ $1,100$ $ $1,330$

Accounts receivable, net $9,1007,200$

Inventory $12,30011,000$

Prepaid expenses $700650$

Total current assets $23,20020,180$

Property and equipment:

Land $9,0009,000$

Buildings and equipment, net $48,79040,790$

Total property and equipment $57,79049,790$

Total assets $ $80,990$ $ $69,970$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $19,800$ $ $18,400$

Accrued liabilities $1,020840$

Notes payable, short term $0100$

Total current liabilities $20,82019,340$

Long$-$term liabilities:

Bonds payable $8,0008,000$

Total liabilities $28,82027,340$

Stockholders' equity:

Common stock $2,0002,000$

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

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

Retained earnings $46,17036,630$

Total stockholders' equity $52,17042,630$

Total liabilities and stockholders' equity $ $80,990$ $ $69,970$

Weller Corporation

Comparative Income Statement and Reconciliation

$($dollars in thousands$)$

This Year Last Year

Sales $ $69,000$ $ $65,000$

Cost of goods sold $34,00037,000$

Gross margin $35,00028,000$

Selling and administrative expenses:

Selling expenses $10,60010,700$

Administrative expenses $7,3006,600$

Total selling and administrative expenses $17,90017,300$

Net operating income $17,10010,700$

Interest expense $800800$

Net income before taxes $16,3009,900$

Income taxes $6,5203,960$

Net income $9,7805,940$

Dividends to common stockholders $240450$

Net income added to retained earnings $9,5405,490$

Beginning retained earnings $36,63031,140$

Ending retained earnings $ $46,170$ $ $36,630$

Required:

Compute the following financial ratios for this year:

$1.$ Times interest earned ratio.

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

$3.$ Equity multiplier.