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 $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	$	1,210		$	1,240
Accounts receivable, net		10,100			7,800
Inventory		13,000			12,400
Prepaid expenses		630			660
Total current assets		24,940			22,100
Property and equipment:
Land		9,500			9,500
Buildings and equipment, net		43,083			40,809
Total property and equipment		52,583			50,309
Total assets	$	77,523		$	72,409
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,500		$	18,400
Accrued liabilities		970			900
Notes payable, short term		0			300
Total current liabilities		21,470			19,600
Long-term liabilities:
Bonds payable		9,600			9,600
Total liabilities		31,070			29,200
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		40,453			37,209
Total stockholders' equity		46,453			43,209
Total liabilities and stockholders' equity	$	77,523		$	72,409

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	67,000		$	64,000
Cost of goods sold		43,000			34,000
Gross margin		24,000			30,000
Selling and administrative expenses:
Selling expenses		10,800			10,800
Administrative expenses		6,500			7,000
Total selling and administrative expenses		17,300			17,800
Net operating income		6,700			12,200
Interest expense		960			960
Net income before taxes		5,740			11,240
Income taxes		2,296			4,496
Net income		3,444			6,744
Dividends to common stockholders		200			375
Net income added to retained earnings		3,244			6,369
Beginning retained earnings		37,209			30,840
Ending retained earnings	$	40,453		$	37,209

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