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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 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 company's common stock at the end of the year was $22. All of the company's soles are on account Weller Corporation Comparative Balance sheet (dollars in thousands This Year Last year Assets Current assets Cash $ 1,160 $1,370 Accounts receivable, net 10,700 8,500 Inventory 13,000 11,100 Prepaid expenses 730 Total current assets 26,390 21.560 Property and equipment Land 9.900 9,900 Buildings and equipment, net 43,170 39,500 Total property and equipment 53,070 49.400 Total asset $79,460 $70,960 Liabilities and Stockholders' Equity Current liabilities Accounts payable $19,700 $19,200 Accrued liabilities 900 740 Notes payable, short term 0 290 Total current liabilities 20,600 20,230 Long-term liabilities Donds payable 9.500 9.500 Total liabilities 36,100 29,230 Stockholders' equity Common stock 2.000 2,000 Additional paid in capital 4.000 4,000 Total paid-in capital 6.000 6,000 Retained earnings 43,360 35,230 Total stockholders' equity 49,360 41.230 Total liabilities and stockholders' equity $79,460 $70,960 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $72,000 $64,000 Cost of goods sold 40,000 39,000 Gross margin 32,000 25,000 Selling and administrative expenses: Selling expenses 10,600 10,300 Administrative expenses 6,500 6,600 Total selling and administrative expenses 17,100 16,900 Net operating income 14,900 8,100 Interest expense 950 950 Net income before taxes 13,950 7,150 Income taxes 5,580 2,860 Net income 8,370 4,290 Dividends to common stockholders 240 300 Net income added to retained earnings 8,130 3,990 Beginning retained earnings 35, 230 31,240 Ending retained earnings $43,360 $35,230 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. 2 Times interest earned ratio Debt-to-equity ratio Equity multiplier 3

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