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 700,000 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 $22. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,140	$ 1,370
Accounts receivable, net	11,000	7,200
Inventory	12,000	11,000
Prepaid expenses	710	590
Total current assets	24,850	20,160
Property and equipment:
Land	9,900	9,900
Buildings and equipment, net	45,634	40,842
Total property and equipment	55,534	50,742
Total assets	$ 80,384	$ 70,902
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 20,400	$ 18,200
Accrued liabilities	1,060	710
Notes payable, short term	0	180
Total current liabilities	21,460	19,090
Long-term liabilities:
Bonds payable	8,800	8,800
Total liabilities	30,260	27,890
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	44,124	37,012
Total stockholders' equity	50,124	43,012
Total liabilities and stockholders' equity	$ 80,384	$ 70,902

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 72,000	$ 65,000
Cost of goods sold	41,000	36,000
Gross margin	31,000	29,000
Selling and administrative expenses:
Selling expenses	11,000	10,900
Administrative expenses	6,800	6,100
Total selling and administrative expenses	17,800	17,000
Net operating income	13,200	12,000
Interest expense	880	880
Net income before taxes	12,320	11,120
Income taxes	4,928	4,448
Net income	7,392	6,672
Dividends to common stockholders	280	700
Net income added to retained earnings	7,112	5,972
Beginning retained earnings	37,012	31,040
Ending retained earnings	$ 44,124	$ 37,012

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.

1. Times interest earned ratio
2. Debt-to-equity ratio
3. Equity multiplier