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 500,000 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 $25. 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 $ 1,180 $ 1,290 Accounts receivable, net 9,700 7,000 Inventory 12,400 12,600 Prepaid expenses 610 620 Total current assets 23,890 21,510 Property and equipment: Land 9,400 9,400 Buildings and equipment, net 50,937 43,121 Total property and equipment 60,337 52,521 Total assets $84,227 $74,031 $20,200 1,100 0 $17,600 700 170 21,300 18,470 9,900 9.900 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 31,200 28,370 2,000 4,000 2,000 4,000 6,000 47,027 6,000 39,661 53,027 45,661 $84,227 $74,031 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $74,000 $66,000 Cost of goods sold 42,000 33,000 Gross margin 32,000 33,000 Selling and administrative expenses: Selling expenses Administrative expenses 11,100 7,300 10,600 6,500 18,400 17,100 13,600 990 15,900 990 14,910 12,610 5,044 5,964 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 7,566 200 8,946 625 7,366 39,661 8,321 31,340 $47,027 $39,661 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