Pre-Built Problems Saved Help Save & Exit Check my 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 $27. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,270 9,000 13,100 660 24,030 $ 1,380 7,900 11,100 590 20,970 10,200 48,512 58,712 $82,742 10, 200 41,606 51,806 $72,776 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabili ies and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $20,200 970 0 21,170 $17,700 730 130 18,560 8,400 29,570 8,400 26,960 2,000 4,000 6,000 47,172 53, 172 $82,742 2,000 4,000 6,000 39,816 45,816 $72,776 Pre-Built Problems Saved Help Save & Exit Check my Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $72,000 $65,000 Cost of goods sold 40,000 32,000 Gross margin 32,000 33,000 Selling and administrative expenses: Selling expenses 11,400 10,200 Administrative expenses 7,100 6,500 Total selling and administrative expenses 18,500 16,700 Net operating income 13,500 16,300 Interest expense 840 840 Net income before taxes 12,660 15,460 Income taxes 5,064 6, 184 Net income 7,596 9,276 Dividends to common stockholders 240 600 Net income added to retained earnings 7,356 8,676 Beginning retained earnings 39,816 31, 140 Ending retained earnings $47, 172 $39,816 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. 2 Times interest earned ratio Debt-to-equity ratio Equity multiplier 3