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Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal 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 $1.00 last year and $0.65 this year. The market value of the companys common stock at the end of the year was $27. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,080		$	1,240
Accounts receivable, net		10,800			8,000
Inventory		12,900			11,400
Prepaid expenses		800			520
Total current assets		25,580			21,160
Property and equipment:
Land		9,800			9,800
Buildings and equipment, net		45,948			40,304
Total property and equipment		55,748			50,104
Total assets	$	81,328		$	71,264
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,500		$	19,400
Accrued liabilities		1,040			800
Notes payable, short term		0			150
Total current liabilities		21,540			20,350
Long-term liabilities:
Bonds payable		8,100			8,100
Total liabilities		29,640			28,450
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		45,688			36,814
Total stockholders' equity		51,688			42,814
Total liabilities and stockholders' equity	$	81,328		$	71,264

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	74,000		$	65,000
Cost of goods sold		39,000			37,000
Gross margin		35,000			28,000
Selling and administrative expenses:
Selling expenses		11,400			10,500
Administrative expenses		7,000			6,400
Total selling and administrative expenses		18,400			16,900
Net operating income		16,600			11,100
Interest expense		810			810
Net income before taxes		15,790			10,290
Income taxes		6,316			4,116
Net income		9,474			6,174
Dividends to common stockholders		600			600
Net income added to retained earnings		8,874			5,574
Beginning retained earnings		36,814			31,240
Ending retained earnings	$	45,688		$	36,814

Required:

Compute the following financial ratios for this year:

1.	Times interest earned ratio. (Round your answer to 1 decimal place.)

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

3.	Equity multiplier. (Round your answer to 2 decimal places.)

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