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 this year was $22. 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: Land Buildings and equipment, net Total property and equipment Total assets Current liabilities: Accounts payable Liabilities and Stockholders' Equity $ 1,210 10,800 $ 1,370 7,800 12,500 11,900 650 600 25,160 21,670 9,700 9,700 41,402 51,102 $ 76,262 $ 18,700 1,010 37,246 46,946 $ 68,616 $ 17,800 800 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 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier. 19,710 250 18,850 8,900 8,900 28,610 27,750 2,000 2,000 4,000 4,000 6,000 6,000 41,652 34,866 47,652 40,866 $ 76,262 $ 68,616 This Year $ 67,000 37,000 Last Year $ 64,000 38,000 30,000 26,000 10,900 10,600 6,500 6,800 17,400 12,600 890 11,710 17,400 8,600 890 7,710 4,684 3,084 7,026 4,626 240 600 6,786 34,866 4,026 30,840 $ 41,652 $ 34,866