Just need help on this problem also, if you could please explain that would be great :) thank you very much
Comparative nancial 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 company's common stock at the end of the year was $27. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,100 $ 1,310 Accounts receivable, net 10,900 7,400 Inventory 14,000 11,500 Prepaid expenses 640 590 Total current assets 26,640 20,800 Property and equipment: Land 10,600 10,600 Buildings and equipment, net 45,616 39,528 Total property and equipment 56,216 50,128 Total assets $82,856 $70,928 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,500 $18,700 Accrued liabilities 1,000 840 Notes payable, short term 0 240 Total current liabilities 20,500 19,780 Long-term liabilities: Bonds payable 9,200 9,200 Total liabilities 29,700 28,980 Stockholders' equity: Common stock 2,000 2,000 Additional paid~in capital 4,000 4,000 Total paid~in capital 6,000 6,000 Retained eamings 47,156 35,948 Total stockholders' equity 53,156 41,948 Total liabilities and stockholders' equity $82,856 $70,928 '11-"-.. n..._.._._.._..l.=_._ Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $75,000 $64,000 Cost of goods sold 37,000 37,000 Gross margin 38,000 27,000 Selling and administrative expenses: Selling expenses 11, 100 10,900 Administrative expenses 6,900 6,100 Total selling and administrative expenses 18,000 17,000 Net operating income 20,000 10,000 Interest expense 920 920 Net income before taxes 19,080 9,080 Income taxes 7,632 3,632 Net income 11,448 5,448 Dividends to common stockholders 240 240 Net income added to retained earnings 11,208 5,208 Beginning retained earnings 35,948 30,740 Ending retained earnings $47, 156 $35,948 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. (Round your answer to 1 decimal place.) Times interest earned ratio2. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 3. Equity multiplier. (Round your answer to 2 decimal places.)