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 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 $23. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,150 10,400 $ 1,250 7,100 13,000 11,100 730 25, 280 680 20,130 10,500 39,735 50,235 $ 75,515 10,500 38,925 49,425 $69,555 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 $19,700 910 0 20,610 $17,400 860 180 18,440 9,500 30, 110 9,500 27,940 2,000 4,000 6,000 39,405 45,405 $ 75,515 2,000 4,000 6,000 35,615 41,615 $69,555 Last Year $66,000 40,000 26,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $67,000 Cost of goods sold 41,000 Gross margin 26,000 Selling and administrative expenses: Selling expenses 11,300 Administrative expenses 7,100 Total selling and administrative expenses 18,400 Net operating income 7,600 Interest expense 950 Net income before taxes 6,650 Income taxes 2,660 Net income 3,990 Dividends to common stockholders 200 Net income added to retained earnings 3,790 Beginning retained earnings 35,615 Ending retained earnings $39, 405 10,200 6,100 16,300 9,700 950 8,750 3,500 5, 250 375 4,875 30,740 $35,615 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