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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

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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 stock during the year. A total of 700,000 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 $075 fast year and $0.40 this year. The market value of the company's common stock at the end of this year was $25. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year 5 1,240 10,400 13,500 770 25,910 $1,220 8,300 11,600 690 21,818 9, 100 39.455 48,555 $ 74,465 9,100 38.505 47.685 $ 59,415 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 $ 20,200 1,010 $ 18,500 780 290 19,570 21,210 9,500 30.710 9.500 29.070 2,000 4,000 6,000 37,255 43,755 $ 74,465 2,000 4,000 6.000 34 345 40.345 5.69, 415 Last Year $ 64,000 41,000 23,000 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 11,300 Administrative expenses 6,600 Total selling and administrative expenses 17,900 Net operating income 7,100 Interest expense 950 Net income before taxes 6,150 Income taxes 2,460 Net income 3,699 Dividends to common stockholders 280 Net income added to retained earnings 3,410 Beginning retained earnings 34, 345 Ending retained earnings $ 37,755 10,200 6,300 16,500 6,500 950 5,550 2,220 3,330 525 2,805 31,540 $ 34,345 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.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier

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