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 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 $ 1,130 9,200 12,700 800 23.830 $ 1,360 6,500 11,600 670 20.130 9,200 44,552 53.752 S. 77,582 9,200 14,356 53,556 $ 73,686 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 $ 19,600 940 0 20,540 $ 18,100 840 120 19,080 8,400 28,940 8,400 27,480 2,000 4.000 6,000 442,642 48.642 2,000 4,000 6,000 40.206 46,206 year and $0.40 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 $ 1,130 9,200 12,700 800 23,830 $ 1,360 6,500 11,600 670 20.130 9,200 44,552 53, 752 $ 77,582 9,200 44,356 53,556 $ 73,686 Assets Current assetst 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 $ 19,600 940 0 20.540 $ 18,100 840 140 19.080 8,400 28,940 8,400 27,480 2,000 4,000 6,000 42,642 48,642 $ 77,582 2,000 4,000 6,000 40,206 46,206 $73.686 Weller Corporation Comparative Income statement and Reconciliation dollars in thousands) Total Ilalties and stockholders equity JO VOU Last Year $ 66,000 32,000 34,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 66,000 Cost of goods sold 43,000 Gross margin 23,000 Selling and administrative expenses : Selling expenses 11,000 Administrative expenses 6, 700 Total selling and administrative expenses 17,700 Net operating income 5,300 Interest expense 840 Net income before taxes 4,460 Income taxes 1,784 Net income 2,676 Dividends to common stockholders 240 Net income added to retained earnings 2,436 Beginning retained earnings 40,206 Ending retained earnings $ 42,642 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier 10,800 6,000 16,800 17,200 840 16, 360 6,544 9,816 450 9,366 30,840 $ 40,206 (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier
