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 $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	$ 1,280	$ 1,360
Accounts receivable, net	10,500	8,500
Inventory	13,200	11,700
Prepaid expenses	640	560
Total current assets	25,620	22,120
Property and equipment:
Land	9,700	9,700
Buildings and equipment, net	42,763	36,059
Total property and equipment	52,463	45,759
Total assets	$ 78,083	$ 67,879
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 20,400	$ 18,000
Accrued liabilities	900	740
Notes payable, short term	0	170
Total current liabilities	21,300	18,910
Long-term liabilities:
Bonds payable	9,100	9,100
Total liabilities	30,400	28,010
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	41,683	33,869
Total stockholders' equity	47,683	39,869
Total liabilities and stockholders' equity	$ 78,083	$ 67,879

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 74,000	$ 65,000
Cost of goods sold	41,000	41,000
Gross margin	33,000	24,000
Selling and administrative expenses:
Selling expenses	11,200	10,600
Administrative expenses	7,400	6,900
Total selling and administrative expenses	18,600	17,500
Net operating income	14,400	6,500
Interest expense	910	910
Net income before taxes	13,490	5,590
Income taxes	5,396	2,236
Net income	8,094	3,354
Dividends to common stockholders	280	525
Net income added to retained earnings	7,814	2,829
Beginning retained earnings	33,869	31,040
Ending retained earnings	$ 41,683	$ 33,869

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