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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $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 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,130 9,700 12,900 600 $ 1,260 8,400 10,900 650 Total current assets 24,330 21,210 Property and equipment: Land Buildings and equipment, net 9,300 43,816 9,300 37,118 Total property and equipment 53,116 46,418 Total assets $77,446 $67,628 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $ 20,400 $ 18,500 1,030 820 0 230 21,430 19,550 Total current liabilities Long-term liabilities: Bonds payable 8,700 8,700 Total liabilities 30,130 28,250 Stockholders' equity Common stock Additional paid-in capital 2,000 4,000 2,000 4,000 Total paid-in capital Retained earnings 6,000 41,316 6,000 33,378 Total stockholders' equity 47,316 39,378 Total liabilities and stockholders' equity $77,446 $67,628 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $68,000 $64,000 Cost of goods sold 36,000 41,000 Gross margin 32,000 23,000 Selling and administrative expenses: Selling expenses Administrative expenses 10,900 6,600 10,400 7,000 Total selling and administrative expenses 17,500 17,400 14,500 870 5,600 870 Net operating income Interest expense Net income before taxes Income taxes 13,630 5,452 4,730 1,892 8,178 240 2,838 600 Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings 7,938 33,378 2,238 31,140 Ending retained earnings $41,316 $33,378 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. (Round your answer to 1 decimal place.) Times interest earned ratio 2. Debt-to-equity ratio. (Round your answer to 2 decimal places.) Debt-to-equity ratio 3. Equity multiplier. (Round your answer to 2 decimal places.) Equity multiplier