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 700,000 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 Year	Last Year
Assets
Current assets:
Cash	$ 1,100	$ 1,260
Accounts receivable, net	9,000	7,200
Inventory	12,700	11,300
Prepaid expenses	620	660
Total current assets	23,420	20,420
Property and equipment:
Land	9,400	9,400
Buildings and equipment, net	45,438	40,264
Total property and equipment	54,838	49,664
Total assets	$ 78,258	$ 70,084
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 18,800	$ 18,200
Accrued liabilities	1,090	870
Notes payable, short term	0	160
Total current liabilities	19,890	19,230
Long-term liabilities:
Bonds payable	9,100	9,100
Total liabilities	28,990	28,330
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	43,268	35,754
Total stockholders' equity	49,268	41,754
Total liabilities and stockholders' equity	$ 78,258	$ 70,084

Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)
	This Year	Last Year
Sales	$ 67,000	$ 64,000
Cost of goods sold	36,000	38,000
Gross margin	31,000	26,000
Selling and administrative expenses:
Selling expenses	10,500	10,300
Administrative expenses	6,600	6,600
Total selling and administrative expenses	17,100	16,900
Net operating income	13,900	9,100
Interest expense	910	910
Net income before taxes	12,990	8,190
Income taxes	5,196	3,276
Net income	7,794	4,914
Dividends to common stockholders	280	700
Net income added to retained earnings	7,514	4,214
Beginning retained earnings	35,754	31,540
Ending retained earnings	$ 43,268	$ 35,754

Required:

Compute the following financial ratios for this year:

Times interest earned ratio.

Debt-to-equity ratio.

Equity multiplier.

Note: For all requirements, round your answers to 2 decimal places.