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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 companys common stock at the end of this year was $24. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,090 9,700 13,300 730 24,820 $ 1,380 8,500 11,300 510 21,690 10,100 41,828 51,928 $ 76, 748 10,100 37,034 47,134 $ 68, 824 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 Liabilities 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 $ 18,700 970 0 $ 17,700 710 170 18,580 19,670 9,100 28,770 9,100 27,680 2,000 4,000 6,000 41,978 47,978 $ 76,748 2,000 4,000 6,000 35,144 41,144 $ 68,824 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 68,000 $ 65,000 Cost of goods sold 37,000 39,000 Gross margin 31,000 26,000 Selling and administrative expenses: Selling expenses 11,200 10,600 Administrative expenses 7,100 6,900 Total selling and administrative expenses 18,300 17,500 Net operating income 12,700 8,500 Interest expense 910 910 Net income before taxes 11,790 7,590 Income taxes 4,716 3,036 Net income 7,074 4,554 Dividends to common stockholders 240 450 Net income added to retained earnings 6,834 4,104 Beginning retained earnings 35,144 31,040 Ending retained earnings $ 41,978 $ 35, 144 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. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier

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