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 $25. 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	$ 1,220
Accounts receivable, net	10,100	7,900
Inventory	13,700	12,100
Prepaid expenses	660	560
Total current assets	25,740	21,780
Property and equipment:
Land	9,000	9,000
Buildings and equipment, net	45,199	37,637
Total property and equipment	54,199	46,637
Total assets	$ 79,939	$ 68,417
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,300	$ 18,000
Accrued liabilities	990	870
Notes payable, short term	0	210
Total current liabilities	20,290	19,080
Long-term liabilities:
Bonds payable	8,800	8,800
Total liabilities	29,090	27,880
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	44,849	34,537
Total stockholders' equity	50,849	40,537
Total liabilities and stockholders' equity	$ 79,939	$ 68,417

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 74,000	$ 64,000
Cost of goods sold	37,000	41,000
Gross margin	37,000	23,000
Selling and administrative expenses:
Selling expenses	11,400	10,200
Administrative expenses	7,200	6,300
Total selling and administrative expenses	18,600	16,500
Net operating income	18,400	6,500
Interest expense	880	880
Net income before taxes	17,520	5,620
Income taxes	7,008	2,248
Net income	10,512	3,372
Dividends to common stockholders	200	375
Net income added to retained earnings	10,312	2,997
Beginning retained earnings	34,537	31,540
Ending retained earnings	$ 44,849	$ 34,537

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.)