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 $22. 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	$ 1,330
Accounts receivable, net	9,400	7,700
Inventory	12,300	11,700
Prepaid expenses	630	560
Total current assets	23,440	21,290
Property and equipment:
Land	9,200	9,200
Buildings and equipment, net	44,061	38,083
Total property and equipment	53,261	47,283
Total assets	$ 76,701	$ 68,573
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 18,600	$ 18,100
Accrued liabilities	1,030	860
Notes payable, short term	0	200
Total current liabilities	19,630	19,160
Long-term liabilities:
Bonds payable	8,700	8,700
Total liabilities	28,330	27,860
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	42,371	34,713
Total stockholders' equity	48,371	40,713
Total liabilities and stockholders' equity	$ 76,701	$ 68,573

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 73,000	$ 65,000
Cost of goods sold	41,000	41,000
Gross margin	32,000	24,000
Selling and administrative expenses:
Selling expenses	10,800	10,500
Administrative expenses	7,100	6,300
Total selling and administrative expenses	17,900	16,800
Net operating income	14,100	7,200
Interest expense	870	870
Net income before taxes	13,230	6,330
Income taxes	5,292	2,532
Net income	7,938	3,798
Dividends to common stockholders	280	525
Net income added to retained earnings	7,658	3,273
Beginning retained earnings	34,713	31,440
Ending retained earnings	$ 42,371	$ 34,713

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.