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 $23. 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 $ 1,158 9,388 12,188 638 $1,250 7,800 12,300 638 23,180 21,988 Property and equipment: Land 9,988 9,900 Buildings and equipment, not 47,576 40,818 57,476 58,718 $88,656 $72,698 Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short tors Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders equity: Common stock Additional paid-in capital $19,000 1,108 $18,100 738 148 28,188 18,978 8,288 280 28,388 27,178 2,000 2,000 4,888 Total paid-in capital 6,808 6,000 Retained earnings 46,356 39,528 Total stockholders' equity 52,356 45,528 Total liabilities and stockholders' equity $80,656 $72,698 Woller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This year Last Year $71,000 Sales $66,000 Cost of goods sold 41,000 34,000 Gross margin 30,088 32,000 Selling and administrative expenses: Selling expenses 18,680 10,100 Administrative expenses 6,800 6,180 Total selling and administrative expenses 17,400 16,200 Net operating Incone 12,500 15,800 Interest expense 828 828 Not income before taxes 11,788 14,988 Income taxes 4,712 5,992 Not income 7,068 8,988 Dividends to common stockholders 248 608 Net income added to retained earnings 6,828 8,388 Beginning retained earnings 39,528 31,140 Ending retained earnings $46,356 $39,528 Required: Compute the following financial ratios for this year. 1. Times Interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier.