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 $27. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,150		$	1,320
Accounts receivable, net		10,700			8,300
Inventory		12,800			11,200
Prepaid expenses		600			540
Total current assets		25,250			21,360
Property and equipment:
Land		9,400			9,400
Buildings and equipment, net		43,086			38,968
Total property and equipment		52,486			48,368
Total assets	$	77,736		$	69,728
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,000		$	17,600
Accrued liabilities		1,090			710
Notes payable, short term		0			170
Total current liabilities		21,090			18,480
Long-term liabilities:
Bonds payable		9,700			9,700
Total liabilities		30,790			28,180
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		40,946			35,548
Total stockholders' equity		46,946			41,548
Total liabilities and stockholders' equity	$	77,736		$	69,728

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	67,000		$	66,000
Cost of goods sold		39,000			40,000
Gross margin		28,000			26,000
Selling and administrative expenses:
Selling expenses		10,800			10,800
Administrative expenses		6,900			6,300
Total selling and administrative expenses		17,700			17,100
Net operating income		10,300			8,900
Interest expense		970			970
Net income before taxes		9,330			7,930
Income taxes		3,732			3,172
Net income		5,598			4,758
Dividends to common stockholders		200			250
Net income added to retained earnings		5,398			4,508
Beginning retained earnings		35,548			31,040
Ending retained earnings	$	40,946		$	35,548

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