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 $25. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,120 10,700 13,000 770 25,590 $ 1,410 8,100 11,600 660 21,770 11,000 41,314 52,314 $77,904 11,000 36,632 47,632 $69,402 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 $20,400 1,010 $18,100 720 250 19,070 21,410 9,300 30,710 9,300 28,370 2,000 4,000 6,000 41,194 47,194 $77,904 2,000 4,000 6,000 35,032 41,032 $69,402 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $70,000 $64,000 Cost of goods sold 40,000 38,000 Gross margin 30,000 26,000 Selling and administrative expenses: Selling expenses 11,400 10,700 Administrative expenses 7,000 6,300 Total selling and administrative expenses 18,400 17,000 Net operating income 11,600 9,000 Interest expense 930 930 Net income before taxes 10,670 8,070 Income taxes 4,268 3,228 Net income 6,402 4,842 Dividends to common stockholders 240 450 Net income added to retained earnings 6,162 4,392 Beginning retained earnings 35,032 30,640 Ending retained earnings $41,194 $35,032 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 Debt-to-equity ratio Equity multiplier 3