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	$ 1,170	$ 1,290
Accounts receivable, net	10,300	7,800
Inventory	12,100	12,100
Prepaid expenses	700	630
Total current assets	24,270	21,820
Property and equipment:
Land	10,400	10,400
Buildings and equipment, net	39,284	36,152
Total property and equipment	49,684	46,552
Total assets	$ 73,954	$ 68,372
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,800	$ 18,200
Accrued liabilities	910	750
Notes payable, short term	0	270
Total current liabilities	20,710	19,220
Long-term liabilities:
Bonds payable	9,800	9,800
Total liabilities	30,510	29,020
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	37,444	33,352
Total stockholders' equity	43,444	39,352
Total liabilities and stockholders' equity	$ 73,954	$ 68,372

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 67,000	$ 65,000
Cost of goods sold	41,000	42,000
Gross margin	26,000	23,000
Selling and administrative expenses:
Selling expenses	11,200	10,700
Administrative expenses	6,600	6,300
Total selling and administrative expenses	17,800	17,000
Net operating income	8,200	6,000
Interest expense	980	980
Net income before taxes	7,220	5,020
Income taxes	2,888	2,008
Net income	4,332	3,012
Dividends to common stockholders	240	600
Net income added to retained earnings	4,092	2,412
Beginning retained earnings	33,352	30,940
Ending retained earnings	$ 37,444	$ 33,352

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.

1. Times interest earned ratio
2. Debt-to-equity ratio
3. Equity multiplier