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 700,000 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 $23. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,230		$	1,330
Accounts receivable, net		9,600			7,700
Inventory		13,300			12,000
Prepaid expenses		640			600
Total current assets		24,770			21,630
Property and equipment:
Land		9,400			9,400
Buildings and equipment, net		42,603			37,559
Total property and equipment		52,003			46,959
Total assets	$	76,773		$	68,589
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,500		$	18,700
Accrued liabilities		1,030			720
Notes payable, short term		0			170
Total current liabilities		20,530			19,590
Long-term liabilities:
Bonds payable		8,600			8,600
Total liabilities		29,130			28,190
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		41,643			34,399
Total stockholders' equity		47,643			40,399
Total liabilities and stockholders' equity	$	76,773		$	68,589

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	69,000		$	65,000
Cost of goods sold		38,000			41,000
Gross margin		31,000			24,000
Selling and administrative expenses:
Selling expenses		10,900			10,400
Administrative expenses		6,700			6,600
Total selling and administrative expenses		17,600			17,000
Net operating income		13,400			7,000
Interest expense		860			860
Net income before taxes		12,540			6,140
Income taxes		5,016			2,456
Net income		7,524			3,684
Dividends to common stockholders		280			525
Net income added to retained earnings		7,244			3,159
Beginning retained earnings		34,399			31,240
Ending retained earnings	$	41,643		$	34,399

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.)

1	times interest earned ratio
2	debt-to-equity ratio