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 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 $30. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,220 10,100 13,600 800 25,720 $ 1,270 6,800 12,000 540 20,610 9,600 49,612 59,212 $84,932 9,600 40,556 50, 156 $70,766 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 $18,900 910 $19,100 740 100 19,940 19,810 8,400 8,400 28,340 28,210 2,000 4,000 2,000 6,000 50,722 56,722 $84,932 4,000 6,000 36,426 42,426 $70,766 Last Year $66,000 39,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $76,000 Cost of goods sold 33,000 Gross margin 43,000 Selling and administrative expenses: Selling expenses 10,800 Administrative expenses 7,200 Total selling and administrative expenses 18,000 Net operating income 25,000 Interest expense 840 Net income before taxes 24,160 Income taxes 9,664 Net income 14,496 Dividends to common stockholders 200 Net income added to retained earnings 14,296 Beginning retained earnings 36,426 Ending retained earnings $50,722 10,600 7,000 17,600 9,400 840 8,560 3,424 5,136 250 4,886 31,540 $36,426 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