b

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 So 40 this year. The market value of the company's common stock at the end of this year was $26. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands This Year Last Year 51,250 9,000 13,200 630 24,630 5.1,350 8,300 11,480 650 21.780 9,000 45, 210 57,210 $ 81,290 9,000 36.690 45,690 $67.390 Assets Current assets! Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipmenti Land Buildings and equipment, net Total property and equipotent Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity! Common stock Additional paid in capital Total paid in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 19,200 1,094 150 20,440 $ 18,500 820 150 19,470 9,000 29.440 9,000 28,470 600 4.000 4,600 42.250 51 850 $ 81,2901 600 4,000 4.600 34,320 38.920 $ 67,390 -11 Last Year $ 65,000 41,080 24,088 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Sales $ 75,000 Cost of goods sold 34,000 Gross margin 41,000 Selling and administrative expenses: Selling expenses 10,980 Administrative expenses 6,900 Total selling and administrative expenses 17,800 Net operating income 23,200 Interest expense 900 Net income before taxes 22,300 Income taxes 8,920 Net income 13, 380 Dividends to common stockholders 450 Net income added to retained earnings 12,930 Beginning retained earnings 34,320 Ending retained earnings $ 47,250 11,800 6,400 17,400 6,609 900 5,700 2,280 3,420 240 3,180 31,140 $ 34,328 es 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.) a 1. Working capital 2. Current ratio 3. Acid-test ratio