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 the 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	$	1,240		$	1,220
Accounts receivable, net		9,600			8,400
Inventory		13,500			11,400
Prepaid expenses		680			510
Total current assets		25,020			21,530
Property and equipment:
Land		10,500			10,500
Buildings and equipment, net		42,778			38,204
Total property and equipment		53,278			48,704
Total assets	$	78,298		$	70,234
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,400		$	19,300
Accrued liabilities		1,090			880
Notes payable, short term		0			220
Total current liabilities		20,490			20,400
Long-term liabilities:
Bonds payable		9,100			9,100
Total liabilities		29,590			29,500
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		42,708			34,734
Total stockholders' equity		48,708			40,734
Total liabilities and stockholders' equity	$	78,298		$	70,234

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	75,000		$	66,000
Cost of goods sold		42,000			41,000
Gross margin		33,000			25,000
Selling and administrative expenses:
Selling expenses		11,100			10,800
Administrative expenses		7,300			6,800
Total selling and administrative expenses		18,400			17,600
Net operating income		14,600			7,400
Interest expense		910			910
Net income before taxes		13,690			6,490
Income taxes		5,476			2,596
Net income		8,214			3,894
Dividends to common stockholders		240			300
Net income added to retained earnings		7,974			3,594
Beginning retained earnings		34,734			31,140
Ending retained earnings	$	42,708		$	34,734

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.)