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 500,000 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 $29. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) ok This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory $ 1,200 10,400 13,000 $ 1,340 7,200 11,500 nt

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 500,000 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 $29. 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 $ 1,200 $ 1,340 Accounts receivable, net 10,400 7,200 Inventory 13,000 11,500 Prepaid expenses 640 600 Total current assets 25, 240 20,640 Property and equipment: Land 10,600 10,600 Buildings and equipment, net 47,679 39,507 Total property and equipment 58,279 50, 107 Total assets $83,519 $70,747 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $18,500 $18,700 Accrued liabilities 1,030 850 Notes payable, short term o 130 Total current liabilities 19,530 19,680 Long-tern abilities Bonds payable 8,300 8,300 Total liabilities 21030 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 49.689 36, 767 Total stockholders' equity 55,689 42,262 Total liabilities and stockholders' equity $83,519 $70,747 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $76,000 $ 66,000 Cost of goods sold 35,000 38,000 Gross margin 41,000 28,000 Selling and administrative expenses: Selling expenses 11,200 10,600 Administrative expenses 7,100 6,900 Total selling and administrative expenses 18,300 17,500 Net operating income 22,700 10,500 Interest expense 830 830 Net income before taxes 21,870 9,670 Income taxes 8,748 3,868 Net income 13,122 5,802 Dividends to common stockholders 200 375 Net income added to retained earnings 12,922 5,427 Beginning retained earnings 36, 767 31,340 Ending retained earnings $49,689 $36,767 ok nt int rences 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