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 $1.00. The market value of the companys common stock at the end of the year was $30. All of the companys sales are on account.

Required:

Compute the following financial ratios for this year:

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.)

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: 1,230 1,350 Cash 9,100 7,800 Accounts receivable, net Inventory 13,900 12,600 Prepaid expenses 800 660 Total current assets 25,030 22,410 Property and equipment Land 10,200 10,200 Buildings and equipment, net 44,374 35,682 Total property and equipment 54,574 45,882 Total assets $79,604 $68,292 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $20,000 17,600 Accrued liabilities 920 760 Notes payable, short term 110 Total current liabilities 20,920 18,470 Long-term liabilities: Bonds payable 8,300 8,300 Total liabilities 29,220 26,770 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 44,384 35,522 Total stockholders' equity 50,384 41,522 Total liabilities and stockholders' equity $79,604 $68,292