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 $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	$	1,090		$	1,230
Accounts receivable, net		10,700			6,700
Inventory		12,300			12,500
Prepaid expenses		730			520
Total current assets		24,820			20,950
Property and equipment:
Land		9,600			9,600
Buildings and equipment, net		42,761			41,073
Total property and equipment		52,361			50,673
Total assets	$	77,181		$	71,623
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,400		$	17,400
Accrued liabilities		1,010			810
Notes payable, short term		0			200
Total current liabilities		21,410			18,410
Long-term liabilities:
Bonds payable		9,700			9,700
Total liabilities		31,110			28,110
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		40,071			37,513
Total stockholders' equity		46,071			43,513
Total liabilities and stockholders' equity	$	77,181		$	71,623

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	66,000		$	66,000
Cost of goods sold		43,000			36,000
Gross margin		23,000			30,000
Selling and administrative expenses:
Selling expenses		10,600			10,300
Administrative expenses		6,700			6,400
Total selling and administrative expenses		17,300			16,700
Net operating income		5,700			13,300
Interest expense		970			970
Net income before taxes		4,730			12,330
Income taxes		1,892			4,932
Net income		2,838			7,398
Dividends to common stockholders		280			525
Net income added to retained earnings		2,558			6,873
Beginning retained earnings		37,513			30,640
Ending retained earnings	$	40,071		$	37,513

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.