Classic Vinyl Limited is a record wholesaler selling new and used vinyl records to record stores and antique shops throughout Canada. The companys comparative financial statements for the fiscal year ending December 31 appear below. The company did not issue any new common or preferred shares during the year. A total of 670,000 common shares were outstanding. The interest rate on the bond payable was 5%, the income tax rate was 30%, and the dividend per common share was $1.60. The market value of the companys common shares at the end of the year was $157. All of the companys sales are on account:

CLASSIC VINYL LIMITED Comparative Balance Sheet (dollars in thousands)
	This Year				Last Year
Assets
Current assets:
Cash	$	2,300			$	2,560
Accounts receivable, net		18,700				14,500
Inventory		27,500				21,520
Prepaid expenses		1,270				1,070
Total current assets		49,770				39,650
Property and equipment:
Land		20,800				20,800
Buildings and equipment, net		80,600				83,000
Total property and equipment		101,400				103,800
Total assets	$	151,170			$	143,450
Liabilities and Shareholders Equity
Current liabilities:
Accounts payable	$	40,500			$	41,317
Accrued payables		1,870				1,820
Notes payable, short term						480
Total current liabilities		42,370				43,617
Long-term liabilities:
Bonds payable		18,800				18,800
Total liabilities		61,170				62,417
Shareholders equity:
Preferred shares		2,000				2,000
Common shares		13,400				13,400
Total paid-in capital		15,400				15,400
Retained earnings		74,600				65,633
Total shareholders equity		90,000				81,033
Total liabilities and shareholders equity	$	151,170			$	143,450

CLASSIC VINYL LIMITED Comparative Income Statement and Reconciliation of Retained Earnings (dollars in thousands)
	This Year				Last Year
Sales	$	205,000			$	204,000
Cost of goods sold		131,800				129,500
Gross margin		73,200				74,500
Selling and administrative expenses:
Selling expenses		35,550				34,050
Administrative expenses		22,900				21,700
Total selling and administrative expenses		58,450				55,750
Operating income		14,750				18,750
Interest expense		940				940
Net income before taxes		13,810				17,810
Income taxes		4,143				5,343
Net income		9,667				12,467
Dividends to preferred shareholders		180				940
Net income remaining for common shareholders		9,487				11,527
Dividends to common shareholders		520				1,072
Net income added to retained earnings		8,967				10,455
Retained earnings, beginning of year		65,633				55,178
Retained earnings, end of year	$	74,600			$	65,633

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio. (Round your answer to nearest whole number.)

2. Debt-to-equity ratio. (Round your answer to 2 decimal places.)