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 $28. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,140 10,800 12,800 650 25,390 $ 1,370 6,900 11,100 610 19,980 9, 300 47,755 57,055 $82,445 9,300 40,085 49,385 $69,365 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' equity $19,400 1,000 0 20,400 $17,500 880 110 18,490 8,500 28,900 8,500 26,990 2,000 4,000 6,000 47,545 53, 545 $82,445 2,000 4,000 6,000 36, 375 42,375 $69, 365 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $72,000 $66,000 Cost of goods sold 35,000 40,000 Gross margin 37,000 26,000 Selling and administrative expenses: Selling expenses 10,500 10,100 Administrative expenses 6,700 6,200 Total selling and administrative expenses 17,200 16,300 Net operating income 19,800 9,700 Interest expense 850 Net income before taxes 18,950 8,850 Income taxes 7,580 3,540 Net income 11,370 5, 310 Dividends to common stockholders 200 375 Net income added to retained earnings 11, 1704 ,935 Beginning retained earnings 36, 375 31, 440 Ending retained earnings $47,545 $36, 375 850 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. (For all requirements, round your answers to 2 decimal places.) 1. 2. Times interest earned ratio Debt-to-equity ratio