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 yel was $25. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,120 10,000 12,900 730 24,750 $ 1,210 7,400 12,200 680 21,490 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: 11,000 46,454 57,454 $82,204 11,000 35,332 46,332 $67,822 $20,300 1,020 $19, 100 890 280 20,270 21,320 8,800 30,120 8,800 29,070 8,800 30,120 8,800 29,070 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 2,000 4,000 6,000 46,084 52,084 $82,204 2,000 4,000 6,000 32,752 38, 752 $67,822 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $75,000 $64,000 Cost of goods sold 34,000 42,000 Gross margin 41,000 22,000 Selling and administrative expenses: Selling expenses 10,600 10,500 Administrative expenses 6,900 6,100 Total selling and administrative expenses 17,500 16,600 Net operating income 23,500 5,400 Interest expense 880 880 Net income before taxes 22,620 4,520 Income taxes 9,048 1,808 Net income 13,572 2,712 Dividends to common stockholders 240 600 Net income added to retained earnings 13,332 2,112 Beginning retained earnings 32,752 30,640 Ending retained earnings $46,084 $32,752 11, JUU Toldt Selling anu dumINIS LI duive 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 23,500 880 22,620 9,048 13,572 240 13,332 32,752 $ 46,084 10, VVU 5,400 880 4,520 1,808 2,712 600 2,112 30,640 $32,752 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. 3. Times interest earned ratio Debt-to-equity ratio Equity multiplier