3 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 stook 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 $25. All of the company's sales are on account 10 Assets Weller Corporation Comparative Balance Sheet (dollars in thousands) This Yeer Last Year Current assets Cath Accounts receivable, et Inventory Prepaid expenses Total current assets $1,150 9,300 51,390 8.400 12,900 790 25,940 11,600 630 22,070 Property and equipment Land 11,000 11,000 Buildings and equipment, net 40,201 Total property and equipment 13,381 50,183 Total assets $75,221 $72,453 Liabilities and stockholders' Equity Current liabilities: Accounts payable Accrued liabilities: $18,600 1,030 $19,300 900 Notes payable, short tere 270 Total current liabilities Long-term liabilities: payable Tutal abilities Stockholders equity Common stock Additional paid-in capital 19,636 20.470 8,200 8,200 27,630 28,670 2,000 2,000 4,000 4,000 Total paid-in capital 6,000 0,000 Retained earnings. 41,391 37.265 Total stockholders' equity 47,991 45,703 Tutal abilities and stockholders' pulty $75,221 $72,453 3 Total liabilities and stockholders' equity Weller Corporation $ 75,221 $ 72,453 Comparative Income Statement and Reconciliation eBook Hint 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 (dollars in thousands) This Year Last Year $ 66,000 $ 64,000 41,000 25,000 34,000 30,000 11,000 10,500 6,700 6,400 17,700 16,900 7,300 13,100 820 820 6,480 12,280 2,592 4,912 3,888 7,368 280 525 3,608 37,783 6,843 30,940 $ 41,391 $ 37,783 Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. Note: For all requirements, round your answers to 2 decimal places. 1. Times interest earned ratio 2 Debt-to-equity ratio 3. Equity multiplier