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 $22. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,250	$ 1,370
Accounts receivable, net	9,400	8,100
Inventory	13,600	11,800
Prepaid expenses	750	530
Total current assets	25,000	21,800
Property and equipment:
Land	10,800	10,800
Buildings and equipment, net	44,391	38,403
Total property and equipment	55,191	49,203
Total assets	$ 80,191	$ 71,003
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,600	$ 18,100
Accrued liabilities	1,070	860
Notes payable, short term	0	290
Total current liabilities	20,670	19,250
Long-term liabilities:
Bonds payable	8,200	8,200
Total liabilities	28,870	27,450
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	45,321	37,553
Total stockholders' equity	51,321	43,553
Total liabilities and stockholders' equity	$ 80,191	$ 71,003

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 70,000	$ 64,000
Cost of goods sold	38,000	35,000
Gross margin	32,000	29,000
Selling and administrative expenses:
Selling expenses	11,100	10,300
Administrative expenses	6,800	6,400
Total selling and administrative expenses	17,900	16,700
Net operating income	14,100	12,300
Interest expense	820	820
Net income before taxes	13,280	11,480
Income taxes	5,312	4,592
Net income	7,968	6,888
Dividends to common stockholders	200	375
Net income added to retained earnings	7,768	6,513
Beginning retained earnings	37,553	31,040
Ending retained earnings	$ 45,321	$ 37,553

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.)