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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 $21. All of the company's sales are on account. Long-term liabilities: Bonds payable Total liabilities \begin{tabular}{rr} 8,700 & 8,700 \\ \hline 29,030 & 27,890 \\ \hline \end{tabular} Stockholders' equity: 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 \begin{tabular}{rr} $73,000 & $65,000 \\ 40,000 & 37,000 \\ \hline 33,000 & 28,000 \\ \hline \end{tabular} Selling and administrative expenses: Selling expenses 11,20010,900 Administrative expenses Total selling and administrative expenses Net operating income \begin{tabular}{rr} 7,200 & 6,100 \\ \hline 18,400 & 17,000 \\ \hline 14,600 & 11,000 \end{tabular} Interest expense Net incone before taxes \begin{tabular}{rr} 870 & 870 \\ \hline 13,730 & 10,130 \end{tabular} Income taxes Net incone Dividends to common stockholders Net income added to retained earnings \begin{tabular}{rr} 5,492 & 4,052 \\ \hline 8,238 & 6,078 \\ 240 & 600 \\ \hline 7,998 & 5,478 \end{tabular} 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.)

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