Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 $28. All of the companys sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,270		$	1,370
Accounts receivable, net		10,900			8,300
Inventory		13,300			11,800
Prepaid expenses		790			530
Total current assets		26,260			22,000
Property and equipment:
Land		9,100			9,100
Buildings and equipment, net		39,058			37,824
Total property and equipment		48,158			46,924
Total assets	$	74,418		$	68,924
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,200		$	17,800
Accrued liabilities		910			830
Notes payable, short term		0			240
Total current liabilities		20,110			18,870
Long-term liabilities:
Bonds payable		9,600			9,600
Total liabilities		29,710			28,470
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		38,708			34,454
Total stockholders' equity		44,708			40,454
Total liabilities and stockholders' equity	$	74,418		$	68,924

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)

This Year

Last Year

Sales

$

69,000

$

65,000

Cost of goods sold

42,000

41,000

Gross margin

27,000

24,000

Selling and administrative expenses:

Selling expenses

11,200

10,400

Administrative expenses

7,000

6,700

Total selling and administrative expenses

18,200

17,100

Net operating income

8,800

6,900

Interest expense

960

960

Net income before taxes

7,840

5,940

Income taxes

3,136

2,376

Net income

4,704

3,564

Dividends to common stockholders

450

450

Net income added to retained earnings

4,254

3,114

Beginning retained earnings

34,454

31,340

Ending retained earnings

$

38,708

$

34,454

1. Times interest earned ratio. (Round your answer to 1 decimal place.)

2. Debt-to-equity ratio. (Round your answer to 2 decimal places.)

3. Equity multiplier. (Round your answer to 2 decimal places.)