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 700,000 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	$	1,250		$	1,340
Accounts receivable, net		9,100			6,700
Inventory		13,500			10,700
Prepaid expenses		720			570
Total current assets		24,570			19,310
Property and equipment:
Land		10,700			10,700
Buildings and equipment, net		45,627			42,621
Total property and equipment		56,327			53,321
Total assets	$	80,897		$	72,631
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,000		$	19,400
Accrued liabilities		970			860
Notes payable, short term		0			110
Total current liabilities		19,970			20,370
Long-term liabilities:
Bonds payable		8,900			8,900
Total liabilities		28,870			29,270
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		46,027			37,361
Total stockholders' equity		52,027			43,361
Total liabilities and stockholders' equity	$	80,897		$	72,631

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	71,000		$	66,000
Cost of goods sold		38,000			36,000
Gross margin		33,000			30,000
Selling and administrative expenses:
Selling expenses		10,600			10,300
Administrative expenses		6,600			6,900
Total selling and administrative expenses		17,200			17,200
Net operating income		15,800			12,800
Interest expense		890			890
Net income before taxes		14,910			11,910
Income taxes		5,964			4,764
Net income		8,946			7,146
Dividends to common stockholders		280			525
Net income added to retained earnings		8,666			6,621
Beginning retained earnings		37,361			30,740
Ending retained earnings	$	46,027		$	37,361

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.