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 this year was $29. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,080		$	1,380
Accounts receivable, net		10,900			6,800
Inventory		12,500			12,500
Prepaid expenses		790			590
Total current assets		25,270			21,270
Property and equipment:
Land		9,600			9,600
Buildings and equipment, net		49,982			43,626
Total property and equipment		59,582			53,226
Total assets	$	84,852		$	74,496
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,500		$	18,900
Accrued liabilities		970			880
Notes payable, short term		0			130
Total current liabilities		21,470			19,910
Long-term liabilities:
Bonds payable		9,400			9,400
Total liabilities		30,870			29,310
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		47,982			39,186
Total stockholders' equity		53,982			45,186
Total liabilities and stockholders' equity	$	84,852		$	74,496

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	71,000		$	65,000
Cost of goods sold		37,000			32,000
Gross margin		34,000			33,000
Selling and administrative expenses:
Selling expenses		11,100			11,000
Administrative expenses		6,900			6,900
Total selling and administrative expenses		18,000			17,900
Net operating income		16,000			15,100
Interest expense		940			940
Net income before taxes		15,060			14,160
Income taxes		6,024			5,664
Net income		9,036			8,496
Dividends to common stockholders		240			450
Net income added to retained earnings		8,796			8,046
Beginning retained earnings		39,186			31,140
Ending retained earnings	$	47,982		$	39,186

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

(For all requirements, round your answers to 2 decimal places.)

1.	Times interest earned ratio
2.	Debt-to-equity ratio