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 500.000 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 $26. All of the company's sales are on account weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $1,220 10,800 12,900 770 25,590 $1,250 6,600 11,200 510 197560 10,900 44,174 55,074 $80,664 10,900 38,612 49512 $69,072 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 $19,000 1,030 0 20,830 $18,900 750 210 19,860 9,300 29,330 9,300 29,160 2,000 4,000 6,000 2,000 4,000 6,000 LA PALMA Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 6,000 45,334 51,334 $80,664 6,080 33,912 39,912 $69,072 Last Year $64,000 40,000 24,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $73,000 Cost of goods sold 35,000 Gross margin 38,000 Selling and administrative expenses: Selling expenses 10,600 Administrative expenses 7,100 Total selling and administrative expenses 17,700 Net operating income 20, 300 Interest expense 930 Net income before taxes 19,370 Income taxes 7,748 Net income 11,622 Dividends to common stockholders 200 Net income added to retained earnings 11,422 Beginning retained earnings 33,912 Ending retained earnings $45,334 10,800 6,980 17,700 6,300 930 5,370 2,148 3,222 250 2,972 30,940 $33,912 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 Times interest earned ratio Debt-to-equity ratio Equity multiplier 3