2)

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 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 $23. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,240		$	1,340
Accounts receivable, net		9,500			8,400
Inventory		12,100			11,600
Prepaid expenses		680			680
Total current assets		23,520			22,020
Property and equipment:
Land		9,700			9,700
Buildings and equipment, net		49,850			38,600
Total property and equipment		59,550			48,300
Total assets	$	83,070		$	70,320
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,500		$	17,800
Accrued liabilities		930			750
Notes payable, short term		290			290
Total current liabilities		21,720			18,840
Long-term liabilities:
Bonds payable		8,000			8,000
Total liabilities		29,720			26,840
Stockholders' equity:
Common stock		600			600
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,600			4,600
Retained earnings		48,750			38,880
Total stockholders' equity		53,350			43,480
Total liabilities and stockholders' equity	$	83,070		$	70,320

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	74,000		$	65,000
Cost of goods sold		38,000			34,000
Gross margin		36,000			31,000
Selling and administrative expenses:
Selling expenses		11,300			10,700
Administrative expenses		6,700			6,700
Total selling and administrative expenses		18,000			17,400
Net operating income		18,000			13,600
Interest expense		800			800
Net income before taxes		17,200			12,800
Income taxes		6,880			5,120
Net income		10,320			7,680
Dividends to common stockholders		450			240
Net income added to retained earnings		9,870			7,440
Beginning retained earnings		38,880			31,440
Ending retained earnings	$	48,750		$	38,880

Required:

Compute the following financial data and ratios for this year:

1. Working capital. (Enter your answer in thousands.)

2. Current ratio. (Round your answer to 2 decimal places.)

3. Acid-test ratio. (Round your answer to 2 decimal places.)

1.	Working capital
2.	Current ratio
3.	Acid-test ratio