Please look over the attached document and answer the questions

4. 10.00 points Exercise 13-4 Financial Ratios for Debt Management [LO13-4] Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, 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 $18. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Assets Current assets: Cash Account s receivable, net Inventor y Prepaid expenses Total current assets Property and equipment: Land Building s and $ 1,280 Last Year $ 1,560 12,300 9,100 9,700 8,200 1,800 2,100 25,080 20,960 6,000 19,200 6,000 19,000 equipment, net Total property and equipment Total assets Liabilitie s and Stockhold ers' Equity Current liabilities: Account s payable Accrued liabilities Notes payable, short term Total current liabilities Longterm liabilities: Bonds payable Total liabilities Stockhold ers' equity: 25,200 25,000 $ 50,280 $ 45,960 $ 9,500 $ 8,300 600 700 300 300 10,400 9,300 5,000 5,000 15,400 14,300 Commo n stock Addition al paid-in capital Total paid-in capital Retain ed earnings Total stockholde rs' equity Total liabilities and stockholde rs' equity Sales Cost of goods sold Gross margin Selling and $ 800 800 4,200 4,200 5,000 5,000 29,880 26,660 34,880 31,660 50,280 $ 45,960 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year $ 79,000 $ 74,000 52,000 48,000 27,000 26,000 administrat ive expenses: Selling expenses Administr ative expenses Total selling and administrat ive expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholde rs Net income added to retained earnings 8,500 8,000 12,000 11,000 20,500 19,000 6,500 7,000 600 600 5,900 6,400 2,360 2,560 3,540 3,840 320 600 3,220 3,240 Beginning retained earnings Ending retained earnings 26,660 $ 23,420 29,880 $ 26,660 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. (Round your answer to 1 decimal place. ) 2. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 3. Equity multiplier. (Round your answer to 2 decimal places.)