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 $0.75 last year and $0.40 this year. The market value of the companys common stock at the end of this year was $27. All of the companys sales are on account.

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.

omparative financial statements for Weller Corporation, a merchandising compar The company did not issue any new common stock during the year. A total of 700 nterest rate on the bond payable was 10%, the income tax rate was 40%, and the ear and $0.40 this year. The market value of the company's common stock at the re on account. Weller Corporatiorn Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: S 1,24 1,310 7,30e 14,80012,e80 10,500 Accounts receivable, net Inventory Prepaid expenses 79% Total current assets Property and equipment 26,5321:228 11,880 11,e0 38,284 49, 204 Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity 43,938 $81,468 $7e,424 Current liabilities Accounts payable s2e,3ee $17,see Accrued liabilities 990 Notes payable, short term Total current liabilities Long-term liabilities 21, 298 18,840 Bonds payable Total 1iabilities 26,940 Stockholders' equity: Common stock 2,8ee Additional paid-in capital Total paid-in capital Retained earnings Total stockholders equity Total 1iabilities and stockholders equity 4,eee 6,880 37.484 52,87843,484 $81,468 $7e,424 weller Corporatiorn Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Ye $75,ee0 $64,8ee 34,8 Sales Cost of goods sold Gross margin Selling and adninistrative expenses: 42,8e6 33,800 Selling expenses 11,00 18,9ee 6,300 Administrative expenses Total selling and administrative expenses Net operating incose Interest expense Net incone before taxes Incone taxes Net income Dividends to comon stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 15,6ee 12,8e8 81e 14,798 11,99e 8, 594 6, 844 e, 640 46,878 $37,484 Required: Compute the following financial ratios for this year Type here to search