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 Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Current liabilities: Accounts payable Liabilities and Stockholders' Equity 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 $ 1,200 9,900 13,600 $ 1,230 7,900 11,300 760 630 25,460 21,060 10,500 10,500 45,344 39,372 55,844 49,872 $ 81,304 $ 70,932 $ 19,800 1,100 0 $ 18,800 790 160 20,900 19,750 9,300 9,300 30,200 29,050 2,000 2,000 4,000 4,000 6,000 6,000 45,104 35,882 51,104 41,882 $ 81,304 $ 70,932 Total liabilities and stockholders' equity $ 81,304 $ 70,932 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 75,000 Last Year $ 66,000 Cost of goods sold 40,000 40,000 Gross margin 35,000 26,000 Selling and administrative expenses: Selling expenses 11,300 10,400 Administrative expenses 7,000 6,600 Total selling and administrative expenses 18,300 17,000 Net operating income 16,700 9,000 Interest expense 930 930 Net income before taxes 15,770 8,070 Income taxes 6,308 3,228 Net income 9,462 4,842 240 300 9,222 35,882 4,542 31,340 $ 45,104 $ 35,882 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. (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier