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 this year was $24. All of the companys sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,260 $ 1,270 Accounts receivable, net 9,900 7,700 Inventory 12,800 12,500 Prepaid expenses 710 540 Total current assets 24,670 22,010 Property and equipment: Land 9,800 9,800 Buildings and equipment, net 48,211 40,203 Total property and equipment 58,011 50,003 Total assets $ 82,681 $ 72,013 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,700 $ 18,700 Accrued liabilities 940 880 Notes payable, short term 0 100 Total current liabilities 19,640 19,680 Long-term liabilities: Bonds payable 9,200 9,200 Total liabilities 28,840 28,880 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 47,841 37,133 Total stockholders' equity 53,841 43,133 Total liabilities and stockholders' equity $ 82,681 $ 72,013 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $ 72,000 $ 66,000 Cost of goods sold 35,000 38,000 Gross margin 37,000 28,000 Selling and administrative expenses: Selling expenses 11,000 10,200 Administrative expenses 6,900 6,600 Total selling and administrative expenses 17,900 16,800 Net operating income 19,100 11,200 Interest expense 920 920 Net income before taxes 18,180 10,280 Income taxes 7,272 4,112 Net income 10,908 6,168 Dividends to common stockholders 200 375 Net income added to retained earnings 10,708 5,793 Beginning retained earnings 37,133 31,340 Ending retained earnings $ 47,841 $ 37,133 Required: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2. Debt-to-equity ratio. (For all requirements, round your answers to 2 decimal places.)