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 500.600 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 oithe company's common stock at the end ofthis year was $29. All ofthe company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,196 $ 1,236 Accounts receivable, net 16,666 7,266 Inventory 12,266 16,366 Prepaid expenses 636 546 Total current assets 24,626 19,776 Property and equipment: Land 16,766 16,766 Buildings and equipment, net 43,472 46,915 Total property and equipment 54,172 51,615 Total assets $ F8,792 $ 71,385 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,666 5 18,566 Accrued liabilities 1,676 776 Notes payable, short term 6 196 Total current liabilities 26,676 19,456 Longterm liabilities: Bonds payable 8,466 8,466 Total liabilities 29,676 27,356 Stockholders' equity: Common stock 2,666 2,666 Additional paidin capital 4,666 4,666 Total paidin capital 6,666 6,666 Retained earnings 43,722 37,525 Total stockholders' equity 49,722 43,525 Total liabilities and stockholders' equity $ ?3:792 $ ?1:335 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ ?1,666 $ 55,666 Heller Corporation Comparative Income Statement and Reconciliation (dollars in thousands} Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative 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 Required: Compute the following financial ratios for this yea r: 1. Times interest earned ratio. 2. Debttoequity 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 This Year Last Year $ t1,eoe $ 55,559 41,956 35,599 36,956 39,566 11,255 1o,see ?,355 5,355 15,555 17,555 11,566 12,455 84% 349 19,556 11,556 4,254 4,524 5,395 5,935 255 256 5,195 5,585 3?,525 3e,a4e $ 43,322 $ 33,525