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 $26. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,280		$	1,210
Accounts receivable, net		9,300			6,900
Inventory		12,400			12,000
Prepaid expenses		750			660
Total current assets		23,730			20,770
Property and equipment:
Land		10,000			10,000
Buildings and equipment, net		46,070			40,160
Total property and equipment		56,070			50,160
Total assets	$	79,800		$	70,930
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,800		$	18,300
Accrued liabilities		940			880
Notes payable, short term		0			130
Total current liabilities		20,740			19,310
Long-term liabilities:
Bonds payable		10,000			10,000
Total liabilities		30,740			29,310
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		43,060			35,620
Total stockholders' equity		49,060			41,620
Total liabilities and stockholders' equity	$	79,800		$	70,930

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	74,000		$	64,000
Cost of goods sold		42,000			37,000
Gross margin		32,000			27,000
Selling and administrative expenses:
Selling expenses		10,900			10,400
Administrative expenses		7,300			6,300
Total selling and administrative expenses		18,200			16,700
Net operating income		13,800			10,300
Interest expense		1,000			1,000
Net income before taxes		12,800			9,300
Income taxes		5,120			3,720
Net income		7,680			5,580
Dividends to common stockholders		240			600
Net income added to retained earnings		7,440			4,980
Beginning retained earnings		35,620			30,640
Ending retained earnings	$	43,060		$	35,620

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.)