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 YearLast YearAssets Current assets: Cash$ 1,130$ 1,340Accounts receivable, net10,3007,100Inventory13,30011,300Prepaid expenses700560Total current assets25,43020,300Property and equipment: Land10,80010,800Buildings and equipment, net46,52539,345Total property and equipment57,32550,145Total assets$ 82,755$ 70,445Liabilities and Stockholders' Equity Current liabilities: Accounts payable$ 19,300$ 17,500Accrued liabilities910830Notes payable, short term0170Total current liabilities20,21018,500Long-term liabilities: Bonds payable10,00010,000Total liabilities30,21028,500Stockholders' equity: Common stock2,0002,000Additional paid-in capital4,0004,000Total paid-in capital6,0006,000Retained earnings46,54535,945Total stockholders' equity52,54541,945Total liabilities and stockholders' equity$ 82,755$ 70,445

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This YearLast YearSales$ 73,000$ 64,000Cost of goods sold36,00037,000Gross margin37,00027,000Selling and administrative expenses: Selling expenses11,20010,700Administrative expenses6,8006,000Total selling and administrative expenses18,00016,700Net operating income19,00010,300Interest expense1,0001,000Net income before taxes18,0009,300Income taxes7,2003,720Net income10,8005,580Dividends to common stockholders200375Net income added to retained earnings10,6005,205Beginning retained earnings35,94530,740Ending retained earnings$ 46,545$ 35,945

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.)