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 700,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $20. 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 $ 1,120 $ 1,250 Accounts receivable, net 10,700 7,700 Inventory 14,000 11,800 Prepaid expenses 710 530 Total current assets 26,530 21,280 9.100 44,606 9,100 38,858 Property and equipment Land Buildings and equipment, net Total property and equipment Total assets 53,706 47,958 $80,236 569,238 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable $19,100 1,000 0 S 19,300 810 250 20,100 20,360 8,700 8,700 Total liabilities 28,800 29,060 2.000 4,000 2.000 4,000 Stockholders' equity Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 6.000 45,436 6.000 34,178 51,436 40.178 $80,236 S 69,238 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $74,000 $ 66,000 Cost of goods sold 36,000 41,000 Gross margin 38,000 25.000 10.600 7,300 10,300 6,600 17,900 16,900 20,100 870 8.100 870 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 earings 19.230 7,692 7,230 2.892 11,538 280 4,338 700 11.258 34,178 3,638 30.540 $45,436 $ 34,178 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. (Round your answer to 1 decimal place.) Times interest earned ratio 2. Debt-to-equity ratio. (Round your answer to 2 decimal places.) Debt-to-equity ratio 3. Equity multiplier. (Round your answer to 2 decimal places.) Equity multiplier