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 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 $22. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,220 11,000 12,400 610 25,230 $ 1,390 8,200 10,600 540 20,730 10,200 43,625 53,825 $79,055 10,200 37,895 48,095 $68,825 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 $19,800 940 0 20,740 $18,800 740 110 19,650 10,000 30,740 10,000 29,650 2,000 4,000 6,000 42,315 48,315 $79,055 2,000 4,000 6,000 33,175 39,175 $68,825 Last Year $64,000 41,000 23,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $70,000 Cost of goods sold 36,000 Gross margin 34,000 Selling and administrative expenses: Selling expenses 10,700 Administrative expenses 6,600 Total selling and administrative expenses 17,300 Net operating income 16,700 Interest expense 1,000 Net income before taxes 15,700 Income taxes 6,280 Net income 9,420 Dividends to common stockholders 280 Net income added to retained earnings 9,140 Beginning retained earnings 33, 175 Ending retained earnings $42,315 10,600 6,800 17,400 5,600 1,000 4,600 1,840 2,760 525 2,235 30,940 $33,175 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. Times interest earned ratio 2. Debt-to-equity ratio Equity multiplier 3