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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the companys common stock at the end of the year was $21. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,160		$	1,320
Accounts receivable, net		9,400			8,400
Inventory		12,900			11,500
Prepaid expenses		660			510
Total current assets		24,120			21,730
Property and equipment:
Land		9,300			9,300
Buildings and equipment, net		45,098			37,994
Total property and equipment		54,398			47,294
Total assets	$	78,518		$	69,024
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,200		$	19,300
Accrued liabilities		1,010			780
Notes payable, short term		0			150
Total current liabilities		21,210			20,230
Long-term liabilities:
Bonds payable		9,100			9,100
Total liabilities		30,310			29,330
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		42,208			33,694
Total stockholders' equity		48,208			39,694
Total liabilities and stockholders' equity	$	78,518		$	69,024

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	76,000		$	64,000
Cost of goods sold		42,000			40,000
Gross margin		34,000			24,000
Selling and administrative expenses:
Selling expenses		11,300			10,700
Administrative expenses		7,200			6,300
Total selling and administrative expenses		18,500			17,000
Net operating income		15,500			7,000
Interest expense		910			910
Net income before taxes		14,590			6,090
Income taxes		5,836			2,436
Net income		8,754			3,654
Dividends to common stockholders		240			600
Net income added to retained earnings		8,514			3,054
Beginning retained earnings		33,694			30,640
Ending retained earnings	$	42,208		$	33,694

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.