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 $23. 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 Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land $ 1,210 9,400 13,900 790 25,300 $ 1,280 6,600 12,400 640 20,920 9,300 9,300 Buildings and equipment, net Total property and equipment 46,382 55,682 41,466 50,766 Total assets $ 80,982 $ 71,686 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 $ 18,600 1,070 0 $ 17,800 830 150 19,670 18,780 8,900 8,900 28,570 27,680 2,000 2,000 4,000 4,000 6,000 6,000 46,412 38,006 Total stockholders' equity Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) 52,412 44,006 $ 80,982 $ 71,686 This Year Sales $ 69,000 Last Year $ 66,000 Cost of goods sold 36,000 35,000 Gross margin 33,000 31,000 Selling and administrative expenses: Selling expenses 10,700 10,600 Administrative expenses 7,000 6,900 Total selling and administrative expenses 17,700 17,500 Net operating income 15,300 13,500 Interest expense 890 890 Net income before taxes 14,410 12,610 5,764 5,044 8,646 7,566 240 Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 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 3. Equity multiplier 8,406 38,006 300 7,266 30,740 $ 46,412 $ 38,006