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 600,000 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 $26. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,110		$	1,370
Accounts receivable, net		11,000			8,500
Inventory		13,600			12,400
Prepaid expenses		770			510
Total current assets		26,480			22,780
Property and equipment:
Land		10,300			10,300
Buildings and equipment, net		36,828			36,574
Total property and equipment		47,128			46,874
Total assets	$	73,608		$	69,654
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,500		$	19,100
Accrued liabilities		950			820
Notes payable, short term		0			260
Total current liabilities		20,450			20,180
Long-term liabilities:
Bonds payable		9,600			9,600
Total liabilities		30,050			29,780
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		37,558			33,874
Total stockholders' equity		43,558			39,874
Total liabilities and stockholders' equity	$	73,608		$	69,654

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	68,000		$	64,000
Cost of goods sold		43,000			41,000
Gross margin		25,000			23,000
Selling and administrative expenses:
Selling expenses		10,700			10,900
Administrative expenses		6,800			6,500
Total selling and administrative expenses		17,500			17,400
Net operating income		7,500			5,600
Interest expense		960			960
Net income before taxes		6,540			4,640
Income taxes		2,616			1,856
Net income		3,924			2,784
Dividends to common stockholders		240			450
Net income added to retained earnings		3,684			2,334
Beginning retained earnings		33,874			31,540
Ending retained earnings	$	37,558		$	33,874

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.)

1. 2. Times interest earned ratio Debt-to-equity ratio Equity multiplier 3