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 $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	$ 1,210	$ 1,300
Accounts receivable, net	9,600	7,100
Inventory	12,600	12,100
Prepaid expenses	620	700
Total current assets	24,030	21,200
Property and equipment:
Land	10,000	10,000
Buildings and equipment, net	47,434	42,072
Total property and equipment	57,434	52,072
Total assets	$ 81,464	$ 73,272
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,400	$ 19,000
Accrued liabilities	1,060	810
Notes payable, short term	0	240
Total current liabilities	20,460	20,050
Long-term liabilities:
Bonds payable	9,300	9,300
Total liabilities	29,760	29,350
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	45,704	37,922
Total stockholders' equity	51,704	43,922
Total liabilities and stockholders' equity	$ 81,464	$ 73,272

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 66,000	$ 65,000
Cost of goods sold	34,000	34,000
Gross margin	32,000	31,000
Selling and administrative expenses:
Selling expenses	11,300	10,700
Administrative expenses	6,400	6,400
Total selling and administrative expenses	17,700	17,100
Net operating income	14,300	13,900
Interest expense	930	930
Net income before taxes	13,370	12,970
Income taxes	5,348	5,188
Net income	8,022	7,782
Dividends to common stockholders	240	600
Net income added to retained earnings	7,782	7,182
Beginning retained earnings	37,922	30,740
Ending retained earnings	$ 45,704	$ 37,922

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.