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 thoucands) This Year Last Year $ 1,120 10,500 12.900 5 1.250 6.600 11.200 10 39,560 770 25590 10,900 10.900 44,124 55074 $10,664 49512 $69,022 Assets Current ansett Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipent Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short tern Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital $19.000 1.030 $18.900 250 216 19,860 20.030 9,300 9,300 20.330 29, 160 2.000 4.000 6.000 2.000 4,000 6.000 Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 4,000 6,000 45,334 51,334 $80,664 4,000 6,000 33,912 39,912 $69,072 Last Year $64,000 40,000 24,000 10,800 6,900 17,700 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 11,622 200 Dividends to common stockholders Net income added to retained earnings 11,422 Beginning retained earnings 33,912 Ending retained earnings $45,334 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 Times interest earned ratio 21.83 0.57 2 Debt-to-equity ratio Equity multiplier 3