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 $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	$ 1,110	$ 1,390
Accounts receivable, net	10,500	7,000
Inventory	12,100	10,700
Prepaid expenses	750	690
Total current assets	24,460	19,780
Property and equipment:
Land	9,400	9,400
Buildings and equipment, net	43,998	39,894
Total property and equipment	53,398	49,294
Total assets	$ 77,858	$ 69,074
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,100	$ 17,500
Accrued liabilities	940	700
Notes payable, short term	0	190
Total current liabilities	20,040	18,390
Long-term liabilities:
Bonds payable	9,100	9,100
Total liabilities	29,140	27,490
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	42,718	35,584
Total stockholders' equity	48,718	41,584
Total liabilities and stockholders' equity	$ 77,858	$ 69,074

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 68,000	$ 64,000
Cost of goods sold	37,000	37,000
Gross margin	31,000	27,000
Selling and administrative expenses:
Selling expenses	11,000	10,400
Administrative expenses	6,800	6,700
Total selling and administrative expenses	17,800	17,100
Net operating income	13,200	9,900
Interest expense	910	910
Net income before taxes	12,290	8,990
Income taxes	4,916	3,596
Net income	7,374	5,394
Dividends to common stockholders	240	450
Net income added to retained earnings	7,134	4,944
Beginning retained earnings	35,584	30,640
Ending retained earnings	$ 42,718	$ 35,584

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.