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	$	1,280		$	1,330
Accounts receivable, net		10,900			7,100
Inventory		12,400			12,200
Prepaid expenses		750			540
Total current assets		25,330			21,170
Property and equipment:
Land		10,200			10,200
Buildings and equipment, net		47,416			42,268
Total property and equipment		57,616			52,468
Total assets	$	82,946		$	73,638
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,900		$	19,200
Accrued liabilities		1,050			740
Notes payable, short term		0			120
Total current liabilities		20,950			20,060
Long-term liabilities:
Bonds payable		9,700			9,700
Total liabilities		30,650			29,760
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		46,296			37,878
Total stockholders' equity		52,296			43,878
Total liabilities and stockholders' equity	$	82,946		$	73,638

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	69,000		$	65,000
Cost of goods sold		36,000			36,000
Gross margin		33,000			29,000
Selling and administrative expenses:
Selling expenses		11,000			10,200
Administrative expenses		6,600			6,100
Total selling and administrative expenses		17,600			16,300
Net operating income		15,400			12,700
Interest expense		970			970
Net income before taxes		14,430			11,730
Income taxes		5,772			4,692
Net income		8,658			7,038
Dividends to common stockholders		240			300
Net income added to retained earnings		8,418			6,738
Beginning retained earnings		37,878			31,140
Ending retained earnings	$	46,296		$	37,878

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.