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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 company's common stock at the end of this year was $23. All of the company's sales are on account. Assets Additional paid-in capital Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Liabilities and Stockholders' Equity Total assets Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Total paid-in capital Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,090 $ 1,330 9,500 12,500 8,100 11,000 760 660 23,850 21,090 9,200 9,200 50,762 43,386 59,962 52,586 $ 83,812 $ 73,676 $ 18,500 $18,600 920 820 0 250 19,420 19,670 9,900 9,900 29,320 29,570 2,000 2,000 4,000 4,000 6,000 6,000 Retained earnings 48,492 38,106 Total stockholders' equity 54,492 44,106 Total liabilities and stockholders' equity $ 83,812 $ 73,676 Sales Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Cost of goods sold Gross margin Selling expenses Administrative expenses Selling and 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 Ending retained earnings This Year Last Year $ 70,000 $ 66,000 33,000 35,000 37,000 31,000 10,900 10,900 7,400 6,500 18,300 17,400 18,700 13,600 990 990 17,710 12,610 7,084 5,044 10,626 7,566 240 600 10,386 38,106 $ 48,492 6,966 31,140 $ 38,106 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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