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 $ 1,270 10,400 12,400 760 24,830 $ 1,280 5, 100 11,100 680 21.160 This Year Last Year $ 1,270 10,400 12,400 760 24,830 $ 1,280 8,100 11,100 680 21,160 9,300 45,608 54,908 $79,738 9,300 42,344 51,644 $72,804 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 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 $19,700 1,090 $19,300 860 299 20,450 20,790 8,100 28,890 8,100 28,550 2,000 4,000 6,000 44,848 50,848 $79,738 2,000 4,000 6,000 38,254 44,254 $72,804 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $70,000 $64,000 Cost of goods sold 40,000 34,000 Gross margin 30,000 30,000 Selling and administrative expenses: Selling expenses 11,200 10,700 Administrative expenses 6,600 6,300 Total selling and administrative expenses 17,800 17,000 Net operating income 12,200 13,000 Interest expense 810 810 Net income before taxes 11,390 12,190 Income taxes 4,556 4,876 Net income 6,834 7,314 Dividends to common stockholders 240 600 Net income added to retained earnings 6,594 6,714 Beginning retained earnings 38,254 31,540 Ending retained earnings $44,848 $38, 254 Required: Compute the following financial ratios for this year 1. Times interest earned ratio. 2. Debt-to-equity ratio