Chapter 15

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.)

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 1 year and $0.40 this year. The market value of the company's common stock at the end of this year was $30. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,149 $ 1,240 1e.zee 7.580 12,180 11,500 630510 24,570 20,75@ 9.989 45,546_ 54,546 $79,116 9,000 37,258 46,258 $67,098 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 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 $19,380 750 $19,780 1 eie 250 20,96 250 20,380 8,780 29,660 8,780 29,90 680 4.980 4.688 44.856 49.456 600 4,080 4. GRA 33.488 38.988 $79.116 $67.988 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $74,000 $65,000 Cost of goods sold 35,880 42,888 Gross margin 39,80 23,80 Selling and administrative expenses: Selling expenses 11, lee 10,980 Administrative expenses 7.2ee6 ,280 Total selling and administrative expenses 18,388 17,180 Net operating income 29,7895 ,980 Interest expense 870 870 Net income before taxes 19,830 5,930 Income taxes 2.812 Net Income 11,898 3,918 Dividends to common stockholders 450 Net income added to retained earnings 11.448 2.568 Beginning retained earnings 33.408 30,840 Ending retained earnings $44,856 $33,488 7,932 458 Required: Compute the following financial data and ratios for this year