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 500,000 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	$	1,200		$	1,220
Accounts receivable, net		9,900			8,400
Inventory		14,000			12,500
Prepaid expenses		790			530
Total current assets		25,890			22,650
Property and equipment:
Land		9,100			9,100
Buildings and equipment, net		41,070			37,330
Total property and equipment		50,170			46,430
Total assets	$	76,060		$	69,080
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,000		$	18,400
Accrued liabilities		1,070			710
Notes payable, short term		0			240
Total current liabilities		21,070			19,350
Long-term liabilities:
Bonds payable		9,000			9,000
Total liabilities		30,070			28,350
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		39,990			34,730
Total stockholders' equity		45,990			40,730
Total liabilities and stockholders' equity	$	76,060		$	69,080

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	68,000		$	65,000
Cost of goods sold		40,000			40,000
Gross margin		28,000			25,000
Selling and administrative expenses:
Selling expenses		10,600			10,500
Administrative expenses		7,400			6,700
Total selling and administrative expenses		18,000			17,200
Net operating income		10,000			7,800
Interest expense		900			900
Net income before taxes		9,100			6,900
Income taxes		3,640			2,760
Net income		5,460			4,140
Dividends to common stockholders		200			250
Net income added to retained earnings		5,260			3,890
Beginning retained earnings		34,730			30,840
Ending retained earnings	$	39,990		$	34,730

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.