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 $28. All of the company's sales are on account. 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 Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,080 9,300 13,600 $ 1,380 7,200 12,300 780 640 24,760 21,520 10,200 10,200 44,080 38,450 54,280 48,650 $ 79,040 $ 70,170 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 $ 19,000 1,000 0 $ 18,000 740 260 20,000 19,000 8,500 8,500 28,500 27,500 2,000 2,000 4,000 4,000 6,000 6,000 44,540 36,670 50,540 42,670 $ 79,040 $ 70,170 Gross margin Sales Cost of goods sold Selling and administrative expenses: Selling expenses Administrative expenses Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year $ 70,000 38,000 Last Year $ 64,000 36,000 32,000 28,000 11,200 10,500 6,500 6,600 Total selling and administrative expenses 17,700 17,100 Net operating income 14,300 10,900 Net income before taxes Interest expense 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 850 850 13,450 10,050 5,380 4,020 8,070 6,030 200 500 7,870 36,670 5,530 31,140 $ 44,540 $ 36,670