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%, 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	$ 1,230	$ 1,390
Accounts receivable, net	10,000	8,100
Inventory	13,200	12,300
Prepaid expenses	640	690
Total current assets	25,070	22,480
Property and equipment:
Land	10,300	10,300
Buildings and equipment, net	41,084	37,872
Total property and equipment	51,384	48,172
Total assets	$ 76,454	$ 70,652
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 18,800	$ 19,200
Accrued liabilities	910	900
Notes payable, short term	0	270
Total current liabilities	19,710	20,370
Long-term liabilities:
Bonds payable	8,300	8,300
Total liabilities	28,010	28,670
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	42,444	35,982
Total stockholders' equity	48,444	41,982
Total liabilities and stockholders' equity	$ 76,454	$ 70,652

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 69,000	$ 66,000
Cost of goods sold	39,000	39,000
Gross margin	30,000	27,000
Selling and administrative expenses:
Selling expenses	11,000	10,200
Administrative expenses	7,000	6,900
Total selling and administrative expenses	18,000	17,100
Net operating income	12,000	9,900
Interest expense	830	830
Net income before taxes	11,170	9,070
Income taxes	4,468	3,628
Net income	6,702	5,442
Dividends to common stockholders	240	300
Net income added to retained earnings	6,462	5,142
Beginning retained earnings	35,982	30,840
Ending retained earnings	$ 42,444	$ 35,982

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.