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 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	$	1,280		$	1,230
Accounts receivable, net		9,100			6,600
Inventory		13,300			12,100
Prepaid expenses		630			690
Total current assets		24,310			20,620
Property and equipment:
Land		9,700			9,700
Buildings and equipment, net		41,562			39,066
Total property and equipment		51,262			48,766
Total assets	$	75,572		$	69,386
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,900		$	18,000
Accrued liabilities		990			790
Notes payable, short term		0			120
Total current liabilities		20,890			18,910
Long-term liabilities:
Bonds payable		8,900			8,900
Total liabilities		29,790			27,810
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		39,782			35,576
Total stockholders' equity		45,782			41,576
Total liabilities and stockholders' equity	$	75,572		$	69,386

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	67,000		$	66,000
Cost of goods sold		40,000			40,000
Gross margin		27,000			26,000
Selling and administrative expenses:
Selling expenses		11,400			10,100
Administrative expenses		7,300			6,700
Total selling and administrative expenses		18,700			16,800
Net operating income		8,300			9,200
Interest expense		890			890
Net income before taxes		7,410			8,310
Income taxes		2,964			3,324
Net income		4,446			4,986
Dividends to common stockholders		240			450
Net income added to retained earnings		4,206			4,536
Beginning retained earnings		35,576			31,040
Ending retained earnings	$	39,782		$	35,576

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.