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 500,000 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 $25. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year	Last Year
Assets
Current assets:
Cash	$ 1,080	$ 1,320
Accounts receivable, net	9,400	7,400
Inventory	13,200	12,400
Prepaid expenses	740	630
Total current assets	24,420	21,750
Property and equipment:
Land	10,300	10,300
Buildings and equipment, net	48,511	42,078
Total property and equipment	58,811	52,378
Total assets	$ 83,231	$ 74,128
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 19,000	$ 18,500
Accrued liabilities	980	870
Notes payable, short term	210	210
Total current liabilities	20,190	19,580
Long-term liabilities:
Bonds payable	9,200	9,200
Total liabilities	29,390	28,780
Stockholders' equity:
Common stock	500	500
Additional paid-in capital	4,000	4,000
Total paid-in capital	4,500	4,500
Retained earnings	49,341	40,848
Total stockholders' equity	53,841	45,348
Total liabilities and stockholders' equity	$ 83,231	$ 74,128

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year	Last Year
Sales	$ 74,000	$ 66,000
Cost of goods sold	40,000	32,000
Gross margin	34,000	34,000
Selling and administrative expenses:
Selling expenses	11,200	10,100
Administrative expenses	7,100	6,300
Total selling and administrative expenses	18,300	16,400
Net operating income	15,700	17,600
Interest expense	920	920
Net income before taxes	14,780	16,680
Income taxes	5,912	6,672
Net income	8,868	10,008
Dividends to common stockholders	375	200
Net income added to retained earnings	8,493	9,808
Beginning retained earnings	40,848	31,040
Ending retained earnings	$ 49,341	$ 40,848

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.)