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 $20. All of the company's sales are on account This Year Last Year $ 1,230 10,880 12, 100 $ 1,340 6,800 11, 180 1e 630 2484e 19,870 10, 40,465 50,465 $75, 305 10,000 37,915 47.915 $67,985 Weller Corporation Comparative Balance Sheet (dollars in thousands) 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 $20,389 I $17,400 1,070 760 210 18,370 21,370 9.000 300 9,000 27370 2, cee 4.000 6,800 38,935 44,935 $25,305 2,000 4.000 6.000 34,415 40.415 $67,985 Last Year $66,000 41,000 25,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $67,000 Cost of goods sold 40,000 Gross margin 27,000 Selling and administrative expenses: Selling expenses 10,700 Administrative expenses 7,400 Total selling and administrative expenses 18 100 Net operating income 8,900 Interest expense 900 Net income before taxes 8,000 Income taxes 3,200 Net income 4,800 Dividends to common stockholders 280 Net income added to retained earnings 4,520 Beginning retained earnings 34,415 Ending retained earnings $38,935 11,000 6,600 17,600 7,480 900 6,500 2,600 3,980 525 3,375 31,640 $34,415 Required: Compute the following financial ratios for this year. I 1. Times interest eamed 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