Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear

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Comparative Financial Statements For Weller Corporation A Merchandising Company For The Year Ending December 31 Appear 1 (38.52 KiB) Viewed 51 times

Comparative Financial Statements For Weller Corporation A Merchandising Company For The Year Ending December 31 Appear 2 (45.53 KiB) Viewed 51 times

Comparative Financial Statements For Weller Corporation A Merchandising Company For The Year Ending December 31 Appear 3 (26.57 KiB) Viewed 51 times

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 $25. 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 $ 1,310 Accounts receivable, net $ 1,250 9,200 7,700 Inventory 12,400 12,000 Prepaid expenses 780 620 23,630 21,630 Total current assets. Property and equipment: Land 10,900 10,900 Buildings and equipment, net 49,974 41,822 Total property and equipment 60,874 52,722 Total assets $ 84,504 $ 74,352 Liabilities and Stockholders' Equity Current liabilities: $19,600 $ 18,300 Accounts payable Accrued liabilities. 960 780 0 280 Notes payable, short term Total current liabilities Long-term liabilities: 20,560 19,360 Bonds payable 9,800 9,800 30,360 29,160 Total liabilities Stockholders' equity: Common stock 2,000 2,000
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 Sales Cost of goods sold. Gross margin Selling and administrative expenses: Selling expenses 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 9,800 30,360 2,000 4,000 6,000 48,144 54,144 $ 84,504 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year. $ 74,000 40,000 34,000 11,300 6,400 17,700 16,300 980 15,320 6,128 9,192 240 8,952 39,192 $ 48,144 9,800 29,160 2,000 4,000 6,000 39,192 45,192 $ 74,352 Last Year $ 66,000 33,000 33,000 10,900 6,700 17,600 15,400 980 14,420 5,768 8,652 600 8,052 31, 140 $ 39,192
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