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 700,000 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 $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,120 10,100 12,800 670 24,690 $ 1,240 7,200 11,500 600 20,540 10,600 50,052 60, 652 $ 85,342 10,600 40, 756 51,356 $71,896 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 $20, 300 1,070 0 21,370 $18,100 870 230 19,200 9,400 30, 770 9,400 28,600 2,000 4,000 6,000 48,572 54,572 $85,342 2,000 4,000 6,000 37, 296 43, 296 $71,896 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 74,000 $65,000 Cost of goods sold 36,000 35,000 Gross margin 38,000 30,000 Selling and administrative expenses: Selling expenses 10,500 10,100 Administrative expenses 7,300 6,700 Total selling and administrative expenses 17,800 16,800 Net operating income 20, 200 13,200 Interest expense 940 940 Net income before taxes 19,260 12,260 Income taxes 7,704 4,904 Net income 11,556 7,356 Dividends to common stockholders 280 700 Net income added to retained earnings 11,276 6,656 Beginning retained earnings 37, 296 30, 640 Ending retained earnings $48,572 $37, 296 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