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 companys common stock at the end of this year was $29. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,220 9,900 13,300 750 25, 170 $ 1,370 6,900 12,500 520 21,290 9,700 42,610 52,310 $77,480 9,700 39, 770 49, 470 $ 70, 760 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 $20,000 930 0 20,930 $19,300 740 210 20, 250 8,000 28,930 8,000 28, 250 2,000 4,000 6,000 42,550 48,550 $77,480 2,000 4,000 6,000 36,510 42,510 $ 70, 760 Last Year $64,000 37,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $69,000 Cost of goods sold 40,000 Gross margin 29,000 Selling and administrative expenses: Selling expenses 11,300 Administrative expenses 6,500 Total selling and administrative expenses 17,800 Net operating income 11,200 Interest expense 800 Net income before taxes 10,400 Income taxes 4,160 Net income 6,240 Dividends to common stockholders 200 Net income added to retained earnings 6,040 Beginning retained earnings 36,510 Ending retained earnings $ 42,550 10,400 6,100 16,500 10,500 800 9,700 3,880 5,820 250 5,570 30,940 $36,510 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