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 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 $28. 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 Total current assets Property and equipment: $ 1,230 9,400 13,600 720 $ 1,280 7,400 10,900 640 24,950 20,220 Land 10,200 10,200 Buildings and equipment, net 52,294 41,142 Total property and equipment 62,494 51,342 Total assets $87,444 $71,562 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $19,700 $17,700 Accrued liabilities 1,030 750 Notes payable, short term 120 Total current liabilities 20,730 18,570 Long-term liabilities: Bonds payable 9,300 9,300 Total liabilities 30,030 27,870 Stockholders' equity: Common stock 2,000 2,000 Additional paid-in capital 4,000 4,000 Total paid-in capital 6,000 6,000 Retained earnings 51,414 37,692 Total paid-in capital Retained earnings Total stockholders' equity 6,000 6,000 51,414 37,692 57,414 43,692 Total liabilities and stockholders' equity $87,444 $71,562 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $76,000 Last Year $66,000 Cost of goods sold 34,000 37,000 Gross margin 42,000 29,000 Selling and administrative expenses: Selling expenses 10,600 10,600 Administrative expenses 7,200 6,300 Total selling and administrative expenses 17,800 16,900 Net operating income 24,200 12,100 Interest expense 930 930 Net income before taxes 23,270 11,170 Income taxes 9,308 4,468 Net income 13,962 6,702 Dividends to common stockholders 240 450 Net income added to retained earnings 13,722 6,252 Beginning retained earnings 37,692 31,440 Ending retained earnings $51,414 $37,692 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier