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 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 companys common stock at the end of this year was $28. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands) This YearLast YearAssets Current assets: Cash$ 1,080$ 1,400Accounts receivable, net9,2007,200Inventory12,50011,700Prepaid expenses730550Total current assets23,51020,850Property and equipment: Land9,9009,900Buildings and equipment, net42,21940,087Total property and equipment52,11949,987Total assets$ 75,629$ 70,837Liabilities and Stockholders' Equity Current liabilities: Accounts payable$ 18,800$ 19,000Accrued liabilities1,030860Notes payable, short term0250Total current liabilities19,83020,110Long-term liabilities: Bonds payable8,8008,800Total liabilities28,63028,910Stockholders' equity: Common stock2,0002,000Additional paid-in capital4,0004,000Total paid-in capital6,0006,000Retained earnings40,99935,927Total stockholders' equity46,99941,927Total liabilities and stockholders' equity$ 75,629$ 70,837

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This YearLast YearSales$ 70,000$ 64,000Cost of goods sold43,00037,000Gross margin27,00027,000Selling and administrative expenses: Selling expenses10,50010,200Administrative expenses6,7006,900Total selling and administrative expenses17,20017,100Net operating income9,8009,900Interest expense880880Net income before taxes8,9209,020Income taxes3,5683,608Net income5,3525,412Dividends to common stockholders280525Net income added to retained earnings5,0724,887Beginning retained earnings35,92731,040Ending retained earnings$ 40,999$ 35,927

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.)