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 $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	$	1,250		$	1,350
Accounts receivable, net		10,800			7,700
Inventory		13,200			12,200
Prepaid expenses		600			590
Total current assets		25,850			21,840
Property and equipment:
Land		10,100			10,100
Buildings and equipment, net		50,900			41,460
Total property and equipment		61,000			51,560
Total assets	$	86,850		$	73,400
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,000		$	18,800
Accrued liabilities		930			890
Notes payable, short term		0			170
Total current liabilities		19,930			19,860
Long-term liabilities:
Bonds payable		9,000			9,000
Total liabilities		28,930			28,860
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		51,920			38,540
Total stockholders' equity		57,920			44,540
Total liabilities and stockholders' equity	$	86,850		$	73,400

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	75,000		$	65,000
Cost of goods sold		34,000			33,000
Gross margin		41,000			32,000
Selling and administrative expenses:
Selling expenses		10,900			10,900
Administrative expenses		6,500			6,700
Total selling and administrative expenses		17,400			17,600
Net operating income		23,600			14,400
Interest expense		900			900
Net income before taxes		22,700			13,500
Income taxes		9,080			5,400
Net income		13,620			8,100
Dividends to common stockholders		240			300
Net income added to retained earnings		13,380			7,800
Beginning retained earnings		38,540			30,740
Ending retained earnings	$	51,920		$	38,540

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.

Please emphasize on question 2, Thank you!