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Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 3 1 appear below. table [ [ Additional paid -

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. \table[[Additional paid-in capital,4,200,4,200],[Total paid-in capital,5,000,5,000],[Retained earnings,29,880,26,660],[Total stockholders' equity,34,880,31,660],[Total liabilities and stockholders' equity,$50,280,$45,960]]
\table[[\table[[Weller Corporation],[Comparative Income Statement and Reconciliation],[(dollars in thousands)]]],[,This Year,Last Year],[Sales,$79,000,$74,000],[Cost of goods sold,52,000,48,000],[Gross margin,27,000,26,000],[Selling and administrative expenses:,,],[Selling expenses,8,500,8,000],[Administrative expenses,12,000,11,000],[Total selling and administrative expenses,20,500,19,000],[Net operating income,6,500,7,000],[Interest expense,600,600],[Net income before taxes,5,900,6,400],[Income taxes,2,360,2,560],[Net income,3,540,3,840],[Dividends to common stockholders,320,600],[Net income added to retained earnings,3,220,3,240],[Beginning retained earnings,26,660,23,420],[Ending retained earnings,$29,880,$26,660]]
Required:
Compute the following financial ratios for this year:
Times interest earned ratio.
Debt-to-equity ratio.
Equity multiplier.
The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The
interest rate on the bond payable was 12%, 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 $18. All of the company's sales
are on account.
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