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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $20. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,270 10,700 13,000 680 25, 650 $ 1,390 6,500 11,400 600 19,890 9,700 40,292 49,992 $ 75,642 9,700 40,206 49,906 $69,796 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 $19,000 $18,000 770 200 18,970 9.950 9,900 29,850 9,900 28,870 2,000 4,000 2,000 4,000 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 6,000 39,792 45,792 $75,642 6,000 34,926 40,926 $69,796 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $68,000 $66,000 Cost of goods sold 41,000 41,000 Gross margin 27,000 25,000 Selling and administrative expenses: Selling expenses 10,800 10,700 Administrative expenses 6,700 6,500 Total selling and administrative expenses 17,500 17,200 Net operating income 9,500 7,800 Interest expense 990 990 Net income before taxes 8,510 6,810 Income taxes 3,404 2,724 Net income 5,106 4,086 Dividends to common stockholders 240 300 Net income added to retained earnings 4,866 3,786 Beginning retained earnings 34,926 31,140 Ending retained earnings $39,792 $34,926 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. 3. Times interest earned ratio Debt-to-equity ratio Equity multiplier