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 700,000 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 $24. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,140		$	1,220
Accounts receivable, net		10,200			8,400
Inventory		12,700			11,400
Prepaid expenses		750			650
Total current assets		24,790			21,670
Property and equipment:
Land		10,900			10,900
Buildings and equipment, net		41,960			36,210
Total property and equipment		52,860			47,110
Total assets	$	77,650		$	68,780
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,700		$	18,100
Accrued liabilities		1,050			750
Notes payable, short term		0			250
Total current liabilities		20,750			19,100
Long-term liabilities:
Bonds payable		8,000			8,000
Total liabilities		28,750			27,100
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		42,900			35,680
Total stockholders' equity		48,900			41,680
Total liabilities and stockholders' equity	$	77,650		$	68,780

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	71,000		$	65,000
Cost of goods sold		40,000			38,000
Gross margin		31,000			27,000
Selling and administrative expenses:
Selling expenses		11,200			10,100
Administrative expenses		6,500			6,700
Total selling and administrative expenses		17,700			16,800
Net operating income		13,300			10,200
Interest expense		800			800
Net income before taxes		12,500			9,400
Income taxes		5,000			3,760
Net income		7,500			5,640
Dividends to common stockholders		280			700
Net income added to retained earnings		7,220			4,940
Beginning retained earnings		35,680			30,740
Ending retained earnings	$	42,900		$	35,680

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

3.Equity multiplier