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 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 $ 1,270 10,600 12,800 670 25, 340 $ 1,300 7,700 11,100 550 20,650 9,600 40,238 49,838 $ 75, 178 9,600 37, 764 47,364 $68,014 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 $ 18,800 930 860 230 19,590 19,730 8,600 28,330 8,600 28,190 2,000 4,000 6,000 40,848 46,848 $ 75, 178 2,000 4,000 6,000 33,824 39,824 $68,014 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $67,000 $65,000 Cost of goods sold 36,000 41,000 Gross margin 31,000 24,000 Selling and administrative expenses: Selling expenses 10,900 10,600 Administrative expenses 7,200 6,400 Total selling and administrative expenses 18,100 17,000 Net operating income 12,900 7,000 Interest expense 860 Net income before taxes 12,040 6,140 Income taxes 4,816 2,456 Net income 7,224 3,684 Dividends to common stockholders 200 500 Net income added to retained earnings 7,024 3,184 Beginning retained earnings 33,824 30,640 Ending retained earnings $40,848 $33,824 860 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