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 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. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,240 9,300 12,100 690 23,330 $ 1,320 7,800 12,500 570 22,190 9,900 45,887 55,787 $79,117 9,900 38,731 48,631 $70,821 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 $18,800 1,050 0 19,850 $19,300 800 270 20,370 9,400 29, 250 9,400 29,770 2,000 4,000 6,000 43,867 49,867 $79,117 2,000 4,000 6,000 35,051 41,051 $70,821 Last Year $65,000 39,000 26,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $71,000 Cost of goods sold 37,000 Gross margin 34,000 Selling and administrative expenses: Selling expenses 11,000 Administrative expenses 6,900 Total selling and administrative expenses 17,900 Net operating income 16,100 Interest expense 940 Net income before taxes 15,160 Income taxes 6,064 Net income 9,096 Dividends to common stockholders 280 Net income added to retained earnings 8,816 Beginning retained earnings 35,051 Ending retained earnings $43,867 10,700 6,800 17,500 8,500 940 7,560 3,024 4,536 525 4,011 31,040 $35,051 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. 2. Times interest earned ratio Debt-to-equity ratio Equity multiplier 3