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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 this year was $22. All of the company's sales are on account This Yeae Last Year weller Corporation Comparative Balance Sheet (dollars in thousands) Assets Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current astets Property and equipment: Land Buildings and equipment, net Total property and equipient Total assets Liabilities and stockholders' Equity $ 1,160 9,000 22,900 670 23,730 $ 1,360 7.500 12,200 530 21,590 10,800 41,619 52,430 $76,160 10,800 37.550 48,350 $69,940 9,000 12,900 670 23,730 7,500 12,200 53e 21,590 10,800 41,630 52,430 $76,160 10,800 37,550 48,350 $69,940 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 $19,600 970 $19,200 840 100 20,140 20,570 8,500 29,070 8,500 28,640 2,000 4,000 6,000 41,090 47,090 $76,160 2,000 4,000 6,000 35,300 41,300 $69,940 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $67,000 $66,000 Cost of goods sold 38,000 40,000 Gross margin 29,000 26,000 Selling and administrative expenses: Selling expenses 11,000 10,800 Administrative expenses 7,100 6,500 Total selling and administrative expenses 18,100 17,300 Net operating income 10,900 8,700 Interest expense 850 850 Net income before taxes 10,050 7,850 Income taxes 4,020 3,140 Net income 6,230 4,710 Dividends to common stockholders 240 450 Net income added to retained earnings 5,790 4,260 Beginning retained earnings 35,300 31, 040 Ending retained earnings $41,090 $35,300 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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