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 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 companys common stock at the end of the year was $26. All of the companys 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 $ 1,150 $ 1,380 10,800 7,300 12,600 12,400 630 540 25,180 21,620 Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets 10,800 43,632 10,800 40,766 54,432 51,566 $79,612 $73,186 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable $19,400 930 0 $18,000 840 140 20,330 18,980 9,400 9,400 29,730 28,380 2,000 4,000 2,000 4,000 Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity 6,000 43,882 6,000 38,806 49,882 44,806 Total liabilities and stockholders' equity $79,612 $ 73,186 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $68,000 $64,000 Cost of goods sold 40,000 32,000 Gross margin 28,000 32,000 11,000 7,200 10,900 6,300 18,200 17,200 14,800 940 9,800 940 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 8,860 3,544 13,860 5,544 5,316 240 8,316 450 5,076 38,806 7,866 30,940 $43,882 $38,806 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