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 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 $23. 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 $ 1,100 10,100 13,800 740 $ 1,220 6,600 10,900 550 Total current assets 25,740 19,270 Property and equipment: Land Buildings and equipment, net 10,500 44,616 10,500 42,998 Total property and equipment 55,116 53,498 Total assets $80,856 $72,768 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term $19,100 1,020 0 $19,200 800 200 20,120 20,200 Total current liabilities Long-term liabilities: Bonds payable 9,200 9,200 Total liabilities 29,320 29,400 Stockholders' equity: Common stock Additional paid-in capital 2,000 4,000 2,000 4,000 Total paid-in capital Retained earnings 6,000 45,536 6,000 37,368 Total stockholders' equity 51,536 43,368 Total liabilities and stockholders' equity $80,856 $72,768 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $70,000 $66,000 Cost of goods sold 37,000 37,000 Gross margin 33,000 29,000 Selling and administrative expenses: Selling expenses Administrative expenses 11,000 7,000 10,900 6,300 Total selling and administrative expenses 18,000 17,200 Net operating income Interest expense 15,000 920 11,800 920 Net income before taxes Income taxes 14,080 5,632 10,880 4,352 Net income Dividends to common stockholders 8,448 280 6,528 700 Net income added to retained earnings Beginning retained earnings 8,168 37,368 5,828 31,540 Ending retained earnings $45,536 $37,368 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