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 500,000 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 $27. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,190		$	1,270
Accounts receivable, net		9,100			7,000
Inventory		12,500			12,200
Prepaid expenses		710			500
Total current assets		23,500			20,970
Property and equipment:
Land		10,200			10,200
Buildings and equipment, net		50,595			42,955
Total property and equipment		60,795			53,155
Total assets	$	84,295		$	74,125
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,100		$	18,700
Accrued liabilities		950			790
Notes payable, short term		0			220
Total current liabilities		21,050			19,710
Long-term liabilities:
Bonds payable		9,500			9,500
Total liabilities		30,550			29,210
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		47,745			38,915
Total stockholders' equity		53,745			44,915
Total liabilities and stockholders' equity	$	84,295		$	74,125

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	72,000		$	65,000
Cost of goods sold		39,000			33,000
Gross margin		33,000			32,000
Selling and administrative expenses:
Selling expenses		10,600			10,900
Administrative expenses		6,400			6,900
Total selling and administrative expenses		17,000			17,800
Net operating income		16,000			14,200
Interest expense		950			950
Net income before taxes		15,050			13,250
Income taxes		6,020			5,300
Net income		9,030			7,950
Dividends to common stockholders		200			375
Net income added to retained earnings		8,830			7,575
Beginning retained earnings		38,915			31,340
Ending retained earnings	$	47,745		$	38,915

Required:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.