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 $29. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,260	$ 1,380
Accounts receivable, net	9,100	7,100
Inventory	12,400	10,900
Prepaid expenses	700	520
Total current assets	23,460	19,900
Property and equipment:
Land	9,500	9,500
Buildings and equipment, net	47,428	42,364
Total property and equipment	56,928	51,864
Total assets	$ 80,388	$ 71,764
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 18,600	$ 18,400
Accrued liabilities	1,040	810
Notes payable, short term	0	220
Total current liabilities	19,640	19,430
Long-term liabilities:
Bonds payable	9,100	9,100
Total liabilities	28,740	28,530
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	45,648	37,234
Total stockholders' equity	51,648	43,234
Total liabilities and stockholders' equity	$ 80,388	$ 71,764

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 72,000	$ 66,000
Cost of goods sold	39,000	36,000
Gross margin	33,000	30,000
Selling and administrative expenses:
Selling expenses	10,800	10,200
Administrative expenses	6,800	6,900
Total selling and administrative expenses	17,600	17,100
Net operating income	15,400	12,900
Interest expense	910	910
Net income before taxes	14,490	11,990
Income taxes	5,796	4,796
Net income	8,694	7,194
Dividends to common stockholders	280	700
Net income added to retained earnings	8,414	6,494
Beginning retained earnings	37,234	30,740
Ending retained earnings	$ 45,648	$ 37,234

Required:

Compute the following financial ratios for this year:

1. Times interest earned ratio.

2. Debt-to-equity ratio.

3. Equity multiplier.