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 the year was $26. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,160		$	1,260
Accounts receivable, net		10,800			7,200
Inventory		12,100			11,900
Prepaid expenses		690			570
Total current assets		24,750			20,930
Property and equipment:
Land		10,900			10,900
Buildings and equipment, net		44,909			38,277
Total property and equipment		55,809			49,177
Total assets	$	80,559		$	70,107
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,200		$	17,800
Accrued liabilities		1,050			720
Notes payable, short term		0			160
Total current liabilities		21,250			18,680
Long-term liabilities:
Bonds payable		9,300			9,300
Total liabilities		30,550			27,980
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		44,009			36,127
Total stockholders' equity		50,009			42,127
Total liabilities and stockholders' equity	$	80,559		$	70,107

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	72,000		$	66,000
Cost of goods sold		40,000			38,000
Gross margin		32,000			28,000
Selling and administrative expenses:
Selling expenses		10,900			10,400
Administrative expenses		6,700			6,900
Total selling and administrative expenses		17,600			17,300
Net operating income		14,400			10,700
Interest expense		930			930
Net income before taxes		13,470			9,770
Income taxes		5,388			3,908
Net income		8,082			5,862
Dividends to common stockholders		200			375
Net income added to retained earnings		7,882			5,487
Beginning retained earnings		36,127			30,640
Ending retained earnings	$	44,009		$	36,127

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.