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 Accounts receivable, net Inventory Prepaid expenses $ 1,140 10,500 12,200 640 $ 1,290 7,300 12,200 680 Total current assets 24,480 21,470 Property and equipment: Land Buildings and equipment, net 10,000 43,915 10,000 37,525 Total property and equipment 53,915 47,525 Total assets $78,395 $68,995 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $20,200 1,050 0 $ 17,900 740 150 21,250 18,790 Total current liabilities Long-term liabilities: Bonds payable 8,000 8,000 Total liabilities 29,250 26,790 Stockholders' equity: Common stock Additional paid-in capital 2,000 4,000 2,000 4,000 Total paid-in capital Retained earnings 6,000 43,145 6,000 36,205 Total stockholders' equity 49,145 42,205 Total liabilities and stockholders' equity $78,395 $68,995 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $68,000 $65,000 Cost of goods sold 38,000 38,000 Gross margin 30,000 27,000 Selling and administrative expenses: Selling expenses Administrative expenses 10,800 6,500 10,500 6,300 Total selling and administrative expenses 17,300 16,800 Net operating income Interest expense 12,700 800 10,200 800 Net income before taxes Income taxes 11,900 4,760 9,400 3,760 Net income Dividends to common stockholders 7,140 200 5,640 375 Net income added to retained earnings Beginning retained earnings 6,940 36,205 5,265 30,940 Ending retained earnings $43,145 $36,205 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