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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the companys common stock at the end of the year was $26. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,220		$	1,230
Accounts receivable, net		10,200			7,000
Inventory		12,200			11,600
Prepaid expenses		690			550
Total current assets		24,310			20,380
Property and equipment:
Land		9,800			9,800
Buildings and equipment, net		48,644			41,392
Total property and equipment		58,444			51,192
Total assets	$	82,754		$	71,572
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,800		$	18,800
Accrued liabilities		960			740
Notes payable, short term		0			280
Total current liabilities		20,760			19,820
Long-term liabilities:
Bonds payable		9,300			9,300
Total liabilities		30,060			29,120
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		46,694			36,452
Total stockholders' equity		52,694			42,452
Total liabilities and stockholders' equity	$	82,754		$	71,572

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	69,000		$	65,000
Cost of goods sold		33,000			37,000
Gross margin		36,000			28,000
Selling and administrative expenses:
Selling expenses		10,700			10,100
Administrative expenses		6,900			6,700
Total selling and administrative expenses		17,600			16,800
Net operating income		18,400			11,200
Interest expense		930			930
Net income before taxes		17,470			10,270
Income taxes		6,988			4,108
Net income		10,482			6,162
Dividends to common stockholders		240			750
Net income added to retained earnings		10,242			5,412
Beginning retained earnings		36,452			31,040
Ending retained earnings	$	46,694		$	36,452
1. Times interest earned ratio

2. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 3. Equity multiplier.