3 Exercise 14-2 (Algo) Financial Ratios for Assessing Liquidity [LO14-2] 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 $075 last year and $0 40 this year. The market value of the company's common stock at the end of this year was $23. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year 51,130 11,000 13,000 720 26250 $1,260 7.700 12,600 SHO 22:140 9,600 42.220 57370 3.84.120 9,60 40,620 50,220 $ 22,360 Assets current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment Land Buildings and equipment, net Total property and equipment Total assets Liabilities and stockholders' Equity Current liabilities Accounts payable Accrued liabilities Notes payable, short term Total current abilities Long-term Ilabilities: Bonds payable Total Habilities Stockholders' equity Connon stock Additional paid in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders equity $ 19,400 930 160 20,490 $18.000 740 160 18.900 10.000 30,400 10,000 28.900 600 4 4.600 400 7630 $ 89,120 600 4000 4.600 38.860 43,460 $ 2,60 Welter Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year 5 71.000 34,000 Sales Cost of goods sold Last Year $.66.000 35,000 Last Year $ 66,000 35,000 31,000 Weiler Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 71,000 34, eee Cost of goods sold Gross margin 37,000 Selling and administrative expenses: Selling expenses 11,400 Administrative expenses 6,900 Total selling and administrative expenses 18,300 Net operating income 18,700 Interest expense 1,000 Net Income before taxes 17,700 Income taxes 7,080 Net income 10,620 Dividends to common stockholders 450 Net income added to retained earnings 10,170 Beginning retained earnings 38,860 Ending retained earnings $ 49,030 18,100 6,800 16,900 14,100 1,000 13,100 5, 240 7,860 240 7,620 31, 240 $ 38,860 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