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 $25. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,190	$ 1,320
Accounts receivable, net	10,900	8,000
Inventory	13,800	11,600
Prepaid expenses	660	550
Total current assets	26,550	21,470
Property and equipment:
Land	10,600	10,600
Buildings and equipment, net	39,034	37,702
Total property and equipment	49,634	48,302
Total assets	$ 76,184	$ 69,772
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,300	$ 19,100
Accrued liabilities	1,080	720
Notes payable, short term	0	220
Total current liabilities	20,380	20,040
Long-term liabilities:
Bonds payable	9,800	9,800
Total liabilities	30,180	29,840
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	40,004	33,932
Total stockholders' equity	46,004	39,932
Total liabilities and stockholders' equity	$ 76,184	$ 69,772

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 69,000	$ 65,000
Cost of goods sold	40,000	41,000
Gross margin	29,000	24,000
Selling and administrative expenses:
Selling expenses	10,900	10,800
Administrative expenses	6,600	6,900
Total selling and administrative expenses	17,500	17,700
Net operating income	11,500	6,300
Interest expense	980	980
Net income before taxes	10,520	5,320
Income taxes	4,208	2,128
Net income	6,312	3,192
Dividends to common stockholders	240	600
Net income added to retained earnings	6,072	2,592
Beginning retained earnings	33,932	31,340
Ending retained earnings	$ 40,004	$ 33,932

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.