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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 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 SO75 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 companys sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,280 1,560 9,100 8,200 1,800 2,100 231030 20,960 12,300 9,700 Total current assets Property and equipment: 6,000 19,200 19,000 25, 200 25,000 $50,280 45,960 Land 6,000 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders Equity Current liabilities: Accounts payable Accrued liabilities 9,500 8,300 700 300 9,300 600 300 10,400 Notes payable, short term Total current liabilities Long-term liabilities: 5,000 15,400 14,300 Bonds payable 5,000 Total liabilities Stockholders' equity: 800 4,200 5,000 29,880 26,660 34,88031,660 50,280 45,960 800 4, 200 5,000 Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation dollars in thousands) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: $79,000 $74,000 52,000 48, 000 27,000 26,000 8,000 12,000 11,000 20,500 19, 000 Selling expenses 8,500 Administrative expenses Total selling and administrative expenges Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 600 6, 400 2,560 3, 840 600 3, 240 26, 660 23,420 $29, 880 $26,660 600 2,360 3, 540 320 3, 220 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. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier

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