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 $29. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,240 10,700 13,300 770 26,010 $ 1,320 6,500 11,100 670 19,590 10,700 45, 325 56,025 $ 82,035 10,700 40,055 50, 755 $ 70, 345 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 $19,800 940 0 20,740 $ 17,900 770 270 18,940 8,500 29, 240 8,500 27,440 2,000 4,000 6,000 46,795 52,795 $82.0.35 2,000 4,000 6,000 36,905 42,905 $79.345 Last Year $ 66,000 38,000 28,000 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 74,000 Cost of goods sold 39,000 Gross margin 35,000 Selling and administrative expenses: Selling expenses 10,600 Administrative expenses 6,600 Total selling and administrative expenses 17,200 Net operating income 17,800 Interest expense 850 Net income before taxes 16,950 Income taxes 6,780 Net income 10,170 Dividends to common stockholders 280 Net income added to retained earnings 9,890 Beginning retained earnings 36,905 Ending retained earnings $ 46,795 10,500 6,000 16,500 11,500 850 10,650 4,260 6,390 525 5,865 31,040 $36,905 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. 3. Equity multiplier