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%.

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 $20. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$	1,280		$	1,300
Accounts receivable, net		10,900			8,500
Inventory		13,000			11,300
Prepaid expenses		670			680
Total current assets		25,850			21,780
Property and equipment:
Land		9,500			9,500
Buildings and equipment, net		49,232			41,506
Total property and equipment		58,732			51,006
Total assets	$	84,582		$	72,786
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,400		$	18,100
Accrued liabilities		950			850
Notes payable, short term		0			240
Total current liabilities		21,350			19,190
Long-term liabilities:
Bonds payable		9,400			9,400
Total liabilities		30,750			28,590
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		47,832			38,196
Total stockholders' equity		53,832			44,196
Total liabilities and stockholders' equity	$	84,582		$	72,786

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$	74,000		$	66,000
Cost of goods sold		39,000			36,000
Gross margin		35,000			30,000
Selling and administrative expenses:
Selling expenses		10,700			10,000
Administrative expenses		6,900			6,800
Total selling and administrative expenses		17,600			16,800
Net operating income		17,400			13,200
Interest expense		940			940
Net income before taxes		16,460			12,260
Income taxes		6,584			4,904
Net income		9,876			7,356
Dividends to common stockholders		240			300
Net income added to retained earnings		9,636			7,056
Beginning retained earnings		38,196			31,140
Ending retained earnings	$	47,832		$	38,196

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.