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 $30. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,240 10,600 12,200 640 24,680 $ 1,310 6,980 11,800 700 20,710 9,400 48,399 57,799 $82,479 9,400 41,757 51,157 $71, 867 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 $18,500 1,000 0 19,500 $18,800 840 140 19,780 9,800 29, 300 9,800 29,580 2,000 4,000 6,000 47,179 53,179 $82,479 2,000 4,000 6,000 36,287 42,287 $71,867 Last Year $65,000 38,000 27,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $70,000 Cost of goods sold 33,000 Gross margin 37,000 Selling and administrative expenses: Selling expenses 10,500 Administrative expenses 6,900 Total selling and administrative expenses 17,400 Net operating income 19,600 Interest expense 980 Net income before taxes 18,620 Income taxes 7,448 Net income 11,172 Dividends to common stockholders 280 Net income added to retained earnings 10,892 Beginning retained earnings 36,287 Ending retained earnings $47,179 10,200 6,200 16,400 10,600 980 9,620 3,848 5,772 525 5,247 31,040 $36,287 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. 2. Times interest earned ratio Debt-to-equity ratio Equity multiplier 3