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 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 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) $ 1,090 10,000 $ 1,260 7,800 11,700 12,800 740 610 24,630 21,370 9,200 9,200 49,632 58,832 $ 83,462 38,546 47,746 $ 69,116 $ 19,700 1,100 20,880 $ 17,400 800 270 18,470 9,400 9,400 38,200 27,870 2,000 2,000 4,000 4,000 6,000 6,000 47,262 35,246 53,262 41,246 $ 83,462 $ 69,116 Selling expenses Administrative expenses This Year Sales $ 73,000 Cost of goods sold 34,000 Last Year $ 64,000 40,000 Gross margin 39,000 24,000 Selling and administrative expenses: 10,800 10,300 6,900 6,000 Total selling and administrative expenses 17,700 21,300 16,300 7,700 Interest expense 948 940 20,360 6,760 8,144 2,784 12,216 4,056 200 250 Net operating income 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. (For all requirements, round your answers to 2 decimal places.) 1. Times interest earned ratio 2. Debt-to-equity ratio 3. Equity multiplier 22.66 12,016 35,246 $ 47,262 3,886 31,440 $ 35,246