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 500,000 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 $21. 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 $ 1,160 $ 1,230 Accounts receivable, net 10,500 6,600 Inventory 12,900 12,300 Prepaid expenses 720 580 Total current assets 25,280 20,710 Property and equipment: Land 10,300 10,300 Buildings and equipment, net 53,057 41,481 Total property and equipment 63,357 51,781 Total assets $88,637 $72,491 $20,400 1,050 0 $ 18,400 770 190 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities 21,450 19,360 8,400 8,400 29,850 27,760 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 38,731 6,000 52,787 58,787 $88,637 44,731 $72,491 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $76,000 $64,000 Cost of goods sold 33,000 33,000 Gross margin 43,000 31,000 11,200 7,200 10,700 6,100 18,400 16,800 24,600 840 14,200 840 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 23,760 9,504 13,360 5,344 14,256 200 8,016 625 14,056 38,731 7,391 31,340 $52,787 $38,731 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