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 600,000 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 $26. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,160 9,600 12,300 790 23,850 $ 1,280 7,800 10,800 550 20,430 10,800 50,474 61,274 $85,124 10,800 42,942 53, 742 $74,172 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' 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 $19,900 1,080 0 20,980 $18,100 740 260 9,800 9,800 28,900 30, 780 2,000 4,000 6,000 48,344 54,344 $ 85,124 2,000 4,000 6,000 39,272 45,272 $74, 172 Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $75,000 $65,000 Cost of goods sold 40,000 33,000 Gross margin 35,000 32,000 Selling and administrative expenses: Selling expenses 11,400 10,100 Administrative expenses 7,100 6,200 Total selling and administrative expenses 18,500 16,300 Net operating income 16,500 15,700 Interest expense 980 980 Net income before taxes 15, 520 14,720 Income taxes 6,208 5,888 Net income 9,312 8,832 Dividends to common stockholders 240 300 Net income added to retained earnings 9,072 8,532 Beginning retained earnings 39,272 30,740 Ending retained earnings $48, 344 $39,272 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