mework Ch 15 6 $ 1,230 9,000 13,300 640 24,170 $ 1,330 6,780 10,700 589 19,310 Assets Current assets Cash Accounts receivable, n Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders. Equit current liabilities: Accounts payable Accrued liabilities Notes payable, short Total current liabilitie Long-term liabilities: 9,200 49,530 158,730 $82,900 9,200 40,520 49,720 $69,030 $20,120 $17,600 89 18,730 21,630 3,500 29,530 8,500 27,230 en 80 010000 to PUPP od 60 OGO0010 late UW OOR DEC TER 0 0 US OU TOOLS od UCC IDE Q10 ie H0 Ft 00 W t 0 2,600 4,920 6.900 47.970 53,376 $82,900 2,000 4,900 6,000 35,800 41,300 $69,030 Sequity and stockho. Next search 35,863 30.849 Beginning retained earnings Ending retained earnings $47,370 $35,809 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $75,000 $66.889 Cost of goods sold 36.888 40,989 Gross margin 39,000 26,089 Selling and administrative expenses Selling expenses 11,100 10,000 Administrative expenses 7,300 6,380 Total selling and administrative expenses 18.400 16,300 Net operating income 9.700 Interest expense 850 850 Net income before taxes 8,850 Income taxes 7,900 3.540 Net income 11,850 5,310 Dividends to common stockholders 282 350 11.570 Net income added to retained earnings 4,960 Beginning retained earnings 35.800 30,840 Ending retained earnings $47,370 $35,800 2e,600 (For all requirements, round your answers to 2 decimal places.) 19,75e 1 20 3. Times interest earned ratio Debt-to-equity ratio Equity multiplier Required: Compute the following financial ratios for this year. 1. Times interest earnec ratio 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 company's common stock at the end of this year was $28. All of the company's sales are on account. Current assets: Accounts receivable, net Prepaid expenses Property and equipment: Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Buildings and equipment, net Total property and equipmunt Total assets Liabilities and Stockholders' Equity Assets $17,6ee Accrued ties Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: $ 1,230 9,000 13,300 640 24,170 5 1,330 6,700 10,700 588 19,312 Total abilities Stocicholders uity Antial prin capital 2,200 49.530 58,738 582,900 2,200 40,52 49.738 $69.30 Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Acer 1tant 14 Total Labslities and stockholders $28,100 .JPG - re to search o El e a w