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 $$0\mathrm{.}75$ last year and $$0\mathrm{.}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 $ $1,130$ $ $1,380$

Accounts receivable, net $10,7007,300$

Inventory $12,10012,000$

Prepaid expenses $750620$

Total current assets $24,68021,300$

Property and equipment:

Land $10,10010,100$

Buildings and equipment, net $50,38441,032$

Total property and equipment $60,48451,132$

Total assets $ $85,164$ $ $72,432$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $19,800$ $ $18,600$

Accrued liabilities $1,000860$

Notes payable, short term $0220$

Total current liabilities $20,80019,680$

Long$-$term liabilities:

Bonds payable $8,8008,800$

Total liabilities $29,60028,480$

Stockholders' equity:

Common stock $2,0002,000$

Additional paid$-$in capital $4,0004,000$

Total paid$-$in capital $6,0006,000$

Retained earnings $49,56437,952$

Total stockholders' equity $55,56443,952$

Total liabilities and stockholders' equity $ $85,164$ $ $72,432$

Weller Corporation

Comparative Income Statement and Reconciliation

$($dollars in thousands$)$

This Year Last Year

Sales $ $73,000$ $ $65,000$

Cost of goods sold $34,00035,000$

Gross margin $39,00030,000$

Selling and administrative expenses:

Selling expenses $11,40010,100$

Administrative expenses $6,9006,500$

Total selling and administrative expenses $18,30016,600$

Net operating income $20,70013,400$

Interest expense $880880$

Net income before taxes $19,82012,520$

Income taxes $7,9285,008$

Net income $11,8927,512$

Dividends to common stockholders $280700$

Net income added to retained earnings $11,6126,812$

Beginning retained earnings $37,95231,140$

Ending retained earnings $ $49,564$ $ $37,952$

Required:

Compute the following financial ratios for this year:

$1.$ Times interest earned ratio.

$2.$ Debt$-$to$-$equity ratio.

$3.$ Equity multiplier.