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

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,130		$	1,380
Accounts receivable, net		10,300			8,400
Inventory		13,700			12,400
Prepaid expenses		620			650
Total current assets		25,750			22,830
Property and equipment:
Land		11,000			11,000
Buildings and equipment, net		41,159			33,607
Total property and equipment		52,159			44,607
Total assets	$	77,909		$	67,437
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,000		$	17,700
Accrued liabilities		960			800
Notes payable, short term		0			230
Total current liabilities		20,960			18,730
Long-term liabilities:
Bonds payable		8,300			8,300
Total liabilities		29,260			27,030
Stockholders' equity:
Common stock		2,000			2,000
Additional paid-in capital		4,000			4,000
Total paid-in capital		6,000			6,000
Retained earnings		42,649			34,407
Total stockholders' equity		48,649			40,407
Total liabilities and stockholders' equity	$	77,909		$	67,437

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	67,000		$	65,000
Cost of goods sold		34,000			41,000
Gross margin		33,000			24,000
Selling and administrative expenses:
Selling expenses		11,400			10,300
Administrative expenses		6,700			6,800
Total selling and administrative expenses		18,100			17,100
Net operating income		14,900			6,900
Interest expense		830			830
Net income before taxes		14,070			6,070
Income taxes		5,628			2,428
Net income		8,442			3,642
Dividends to common stockholders		200			375
Net income added to retained earnings		8,242			3,267
Beginning retained earnings		34,407			31,140
Ending retained earnings	$	42,649		$	34,407

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.)