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 the year was $25. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,150		$	1,290
Accounts receivable, net		10,000			8,400
Inventory		12,200			10,800
Prepaid expenses		690			560
Total current assets		24,040			21,050
Property and equipment:
Land		9,400			9,400
Buildings and equipment, net		47,320			41,920
Total property and equipment		56,720			51,320
Total assets	$	80,760		$	72,370
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,300		$	18,500
Accrued liabilities		970			850
Notes payable, short term		0			220
Total current liabilities		21,270			19,570
Long-term liabilities:
Bonds payable		9,500			9,500
Total liabilities		30,770			29,070
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		43,990			37,300
Total stockholders' equity		49,990			43,300
Total liabilities and stockholders' equity	$	80,760		$	72,370

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	69,000		$	66,000
Cost of goods sold		38,000			37,000
Gross margin		31,000			29,000
Selling and administrative expenses:
Selling expenses		11,400			10,900
Administrative expenses		7,100			6,800
Total selling and administrative expenses		18,500			17,700
Net operating income		12,500			11,300
Interest expense		950			950
Net income before taxes		11,550			10,350
Income taxes		4,620			4,140
Net income		6,930			6,210
Dividends to common stockholders		240			450
Net income added to retained earnings		6,690			5,760
Beginning retained earnings		37,300			31,540
Ending retained earnings	$	43,990		$	37,300

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.