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 $20. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands) This YearLast YearAssets Current assets: Cash$ 1,270$ 1,340Accounts receivable, net9,8007,900Inventory13,20011,000Prepaid expenses610510Total current assets24,88020,750Property and equipment: Land11,00011,000Buildings and equipment, net47,17440,902Total property and equipment58,17451,902Total assets$ 83,054$ 72,652Liabilities and Stockholders' Equity Current liabilities: Accounts payable$ 20,200$ 17,600Accrued liabilities930820Notes payable, short term0270Total current liabilities21,13018,690Long-term liabilities: Bonds payable9,3009,300Total liabilities30,43027,990Stockholders' equity: Common stock2,0002,000Additional paid-in capital4,0004,000Total paid-in capital6,0006,000Retained earnings46,62438,662Total stockholders' equity52,62444,662Total liabilities and stockholders' equity$ 83,054$ 72,652

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This YearLast YearSales$ 67,000$ 66,000Cost of goods sold34,00036,000Gross margin33,00030,000Selling and administrative expenses: Selling expenses11,30010,000Administrative expenses7,1006,200Total selling and administrative expenses18,40016,200Net operating income14,60013,800Interest expense930930Net income before taxes13,67012,870Income taxes5,4685,148Net income8,2027,722Dividends to common stockholders240300Net income added to retained earnings7,9627,422Beginning retained earnings38,66231,240Ending retained earnings$ 46,624$ 38,662

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.)