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 the year was $29. All of the company's sales are on account. Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,250 9,900 12,900 710 24,760 $ 1,290 7,700 11,900 620 21,510 9,600 43,970 53,570 $78,330 9,600 38,200 47,800 $ 69,310 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 Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equitv $18 700 $19,900 970 20,870 19,620 8,500 29,370 8,500 28,120 2,000 4,000 6,000 42,960 48,960 $78.330 2,000 4,000 6,000 35, 190 41,190 $69.310 This Year Last Year $70,000 $65,000 38,000 40,000 32,000 25,000 10,600 7,200 17,800 14,200 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 10,200 6,200 16,400 8,600 950 13.350 5.340 8.010 240 3,100 4.650 300 4,350 30.840 $ 35, 190 7.770 35, 190 $42.960 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