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 $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	$	1,120		$	1,210
Accounts receivable, net		9,800			7,600
Inventory		12,600			11,900
Prepaid expenses		640			660
Total current assets		24,160			21,370
Property and equipment:
Land		9,500			9,500
Buildings and equipment, net		42,437			41,521
Total property and equipment		51,937			51,021
Total assets	$	76,097		$	72,391
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	18,800		$	19,100
Accrued liabilities		1,000			870
Notes payable, short term		0			130
Total current liabilities		19,800			20,100
Long-term liabilities:
Bonds payable		8,900			8,900
Total liabilities		28,700			29,000
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		41,397			37,391
Total stockholders' equity		47,397			43,391
Total liabilities and stockholders' equity	$	76,097		$	72,391

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	66,000		$	64,000
Cost of goods sold		40,000			36,000
Gross margin		26,000			28,000
Selling and administrative expenses:
Selling expenses		11,300			10,200
Administrative expenses		6,800			6,200
Total selling and administrative expenses		18,100			16,400
Net operating income		7,900			11,600
Interest expense		890			890
Net income before taxes		7,010			10,710
Income taxes		2,804			4,284
Net income		4,206			6,426
Dividends to common stockholders		200			375
Net income added to retained earnings		4,006			6,051
Beginning retained earnings		37,391			31,340
Ending retained earnings	$	41,397		$	37,391

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.