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 $0.75 last year and $0.40 this year. The market value of the companys common stock at the end of this year was $24. All of the companys sales are on account.

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.)

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,190 10,600 13,400 780 25,970 $ 1,270 8,200 10,700 680 20,850 9,200 39,754 48,954 $ 74,924 9,200 39,672 48,872 $69,722 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders ' equity $19,700 930 0 20,630 $18,100 780 130 19,010 9,300 29,930 9,300 28,310 2,000 4,000 6,000 38,994 44,994 $ 74,924 2,000 4,000 6,000 35,412 41,412 $69,722 Last Year $65,000 39,000 26,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $67,000 Cost of goods sold 42,000 Gross margin 25,000 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 6,900 Total selling and administrative expenses 17,700 Net operating income 7,300 Interest expense 930 Net income before taxes 6,370 Income taxes 2,548 Net income 3,822 Dividends to common stockholders 240 Net income added to retained earnings 3,582 Beginning retained earnings 35,412 Ending retained earnings $38,994 10,100 6,600 16,700 9,300 930 8,370 3,348 5,022 450 4,572 30,840 $35, 412 1. Times interest earned ratio 2. Debt-to-equity ratio Equity multiplier 3