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 bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the companys common stock at the end of the year was $21. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,120		$	1,330
Accounts receivable, net		9,700			7,500
Inventory		12,800			10,700
Prepaid expenses		620			560
Total current assets		24,240			20,090
Property and equipment:
Land		9,500			9,500
Buildings and equipment, net		51,166			41,408
Total property and equipment		60,666			50,908
Total assets	$	84,906		$	70,998
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,400		$	17,900
Accrued liabilities		1,060			800
Notes payable, short term		0			120
Total current liabilities		21,460			18,820
Long-term liabilities:
Bonds payable		9,200			9,200
Total liabilities		30,660			28,020
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		48,246			36,978
Total stockholders' equity		54,246			42,978
Total liabilities and stockholders' equity	$	84,906		$	70,998

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)

This Year

Last Year

Sales

$

73,000

$

64,000

Cost of goods sold

35,000

36,000

Gross margin

38,000

28,000

Selling and administrative expenses:

Selling expenses

10,600

10,100

Administrative expenses

7,300

6,500

Total selling and administrative expenses

17,900

16,600

Net operating income

20,100

11,400

Interest expense

920

920

Net income before taxes

19,180

10,480

Income taxes

7,672

4,192

Net income

11,508

6,288

Dividends to common stockholders

240

750

Net income added to retained earnings

11,268

5,538

Beginning retained earnings

36,978

31,440

Ending retained earnings

$

48,246

$

36,978

Required:

Compute the following financial ratios for this year:

part1.

Times interest earned ratio.

part2.

Debt-to-equity ratio.

part3.

Equity multiplier.