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 $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	$	1,170		$	1,330
Accounts receivable, net		9,600			6,800
Inventory		12,900			11,000
Prepaid expenses		740			690
Total current assets		24,410			19,820
Property and equipment:
Land		10,900			10,900
Buildings and equipment, net		45,598			42,014
Total property and equipment		56,498			52,914
Total assets	$	80,908		$	72,734
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,800		$	17,600
Accrued liabilities		1,010			790
Notes payable, short term		0			210
Total current liabilities		20,810			18,600
Long-term liabilities:
Bonds payable		8,600			8,600
Total liabilities		29,410			27,200
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		45,498			39,534
Total stockholders' equity		51,498			45,534
Total liabilities and stockholders' equity	$	80,908		$	72,734

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	68,000		$	65,000
Cost of goods sold		39,000			33,000
Gross margin		29,000			32,000
Selling and administrative expenses:
Selling expenses		10,600			10,800
Administrative expenses		7,200			6,100
Total selling and administrative expenses		17,800			16,900
Net operating income		11,200			15,100
Interest expense		860			860
Net income before taxes		10,340			14,240
Income taxes		4,136			5,696
Net income		6,204			8,544
Dividends to common stockholders		240			450
Net income added to retained earnings		5,964			8,094
Beginning retained earnings		39,534			31,440
Ending retained earnings	$	45,498		$	39,534

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.