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 $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	$	1,260		$	1,270
Accounts receivable, net		9,500			7,400
Inventory		13,000			12,500
Prepaid expenses		610			560
Total current assets		24,370			21,730
Property and equipment:
Land		9,300			9,300
Buildings and equipment, net		48,903			41,039
Total property and equipment		58,203			50,339
Total assets	$	82,573		$	72,069
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,300		$	17,800
Accrued liabilities		900			810
Notes payable, short term		0			190
Total current liabilities		21,200			18,800
Long-term liabilities:
Bonds payable		9,600			9,600
Total liabilities		30,800			28,400
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		45,773			37,669
Total stockholders' equity		51,773			43,669
Total liabilities and stockholders' equity	$	82,573		$	72,069

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	73,000		$	65,000
Cost of goods sold		40,000			35,000
Gross margin		33,000			30,000
Selling and administrative expenses:
Selling expenses		11,200			10,500
Administrative expenses		7,000			6,200
Total selling and administrative expenses		18,200			16,700
Net operating income		14,800			13,300
Interest expense		960			960
Net income before taxes		13,840			12,340
Income taxes		5,536			4,936
Net income		8,304			7,404
Dividends to common stockholders		200			375
Net income added to retained earnings		8,104			7,029
Beginning retained earnings		37,669			30,640
Ending retained earnings	$	45,773		$	37,669

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.