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 $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	$	1,250		$	1,320
Accounts receivable, net		9,100			7,100
Inventory		12,600			11,000
Prepaid expenses		750			650
Total current assets		23,700			20,070
Property and equipment:
Land		10,400			10,400
Buildings and equipment, net		47,226			40,358
Total property and equipment		57,626			50,758
Total assets	$	81,326		$	70,828
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	18,500		$	17,500
Accrued liabilities		920			750
Notes payable, short term		0			230
Total current liabilities		19,420			18,480
Long-term liabilities:
Bonds payable		8,700			8,700
Total liabilities		28,120			27,180
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		47,206			37,648
Total stockholders' equity		53,206			43,648
Total liabilities and stockholders' equity	$	81,326		$	70,828

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	74,000		$	65,000
Cost of goods sold		39,000			35,000
Gross margin		35,000			30,000
Selling and administrative expenses:
Selling expenses		11,100			10,600
Administrative expenses		6,700			6,100
Total selling and administrative expenses		17,800			16,700
Net operating income		17,200			13,300
Interest expense		870			870
Net income before taxes		16,330			12,430
Income taxes		6,532			4,972
Net income		9,798			7,458
Dividends to common stockholders		240			450
Net income added to retained earnings		9,558			7,008
Beginning retained earnings		37,648			30,640
Ending retained earnings	$	47,206		$	37,648

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.)