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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the companys common stock at the end of the year was $24. All of the companys sales are on account.

Required:

Compute the following financial ratios for this year:

1.	Times interest earned ratio. (Round your answer to 1 decimal place.)

2.	Debt-to-equity ratio. (Round your answer to 2 decimal places.)

3.	Equity multiplier. (Round your answer to 2 decimal places.)

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,180 $ 1,390 9,200 8,400 13,100 11,700 700 690 24,180 22,180 Total current assets Property and equipment: Land Buildings and equipment, net 10,000 43,230 10,000 39,610 53,230 49,610 Total property and equipment Total assets $77,410 $71,790 $19,000 $18,000 970 710 0 170 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities 19,970 18,880 9,500 9,500 29,470 28,380 2,000 4,000 2,000 4,000 Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 6,000 41,940 6,000 37,410 47,940 43,410 Total liabilities and stockholders' equity $77,410 $71,790 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $67,000 $65,000 Cost of goods sold 40,000 36,000 Gross margin 27,000 29,000 10,800 7,300 10,600 6,000 18,100 16,600 8,900 950 12,400 950 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses 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 7,950 3,180 11,450 4,580 4,770 240 6,870 600 4,530 37,410 6,270 31,140 Ending retained earnings $41,940 $37,410