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 this year was $28. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,190	$ 1,310
Accounts receivable, net	10,100	7,600
Inventory	13,800	10,800
Prepaid expenses	740	550
Total current assets	25,830	20,260
Property and equipment:
Land	9,500	9,500
Buildings and equipment, net	45,260	39,770
Total property and equipment	54,760	49,270
Total assets	$ 80,590	$ 69,530
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,200	$ 17,700
Accrued liabilities	1,000	770
Notes payable, short term	0	120
Total current liabilities	20,200	18,590
Long-term liabilities:
Bonds payable	9,500	9,500
Total liabilities	29,700	28,090
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	44,890	35,440
Total stockholders' equity	50,890	41,440
Total liabilities and stockholders' equity	$ 80,590	$ 69,530

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 72,000	$ 64,000
Cost of goods sold	37,000	38,000
Gross margin	35,000	26,000
Selling and administrative expenses:
Selling expenses	10,700	10,300
Administrative expenses	7,200	6,500
Total selling and administrative expenses	17,900	16,800
Net operating income	17,100	9,200
Interest expense	950	950
Net income before taxes	16,150	8,250
Income taxes	6,460	3,300
Net income	9,690	4,950
Dividends to common stockholders	240	450
Net income added to retained earnings	9,450	4,500
Beginning retained earnings	35,440	30,940
Ending retained earnings	$ 44,890	$ 35,440

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.