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 $27. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,200	$ 1,280
Accounts receivable, net	9,100	7,900
Inventory	13,700	11,000
Prepaid expenses	780	530
Total current assets	24,780	20,710
Property and equipment:
Land	9,500	9,500
Buildings and equipment, net	52,446	43,968
Total property and equipment	61,946	53,468
Total assets	$ 86,726	$ 74,178
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,600	$ 18,400
Accrued liabilities	980	860
Notes payable, short term	0	230
Total current liabilities	20,580	19,490
Long-term liabilities:
Bonds payable	9,700	9,700
Total liabilities	30,280	29,190
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	50,446	38,988
Total stockholders' equity	56,446	44,988
Total liabilities and stockholders' equity	$ 86,726	$ 74,178

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 74,000	$ 65,000
Cost of goods sold	35,000	33,000
Gross margin	39,000	32,000
Selling and administrative expenses:
Selling expenses	11,300	10,100
Administrative expenses	7,300	6,600
Total selling and administrative expenses	18,600	16,700
Net operating income	20,400	15,300
Interest expense	970	970
Net income before taxes	19,430	14,330
Income taxes	7,772	5,732
Net income	11,658	8,598
Dividends to common stockholders	200	250
Net income added to retained earnings	11,458	8,348
Beginning retained earnings	38,988	30,640
Ending retained earnings	$ 50,446	$ 38,988

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.)