Check my word m. Exercise 16-2 (Algo) Financial Ratios for Assessing Liquidity (L016-2) 25 points 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 700,000 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 company's common stock at the end of this year was $26. All of the company's sales are on account This Year Last Year 5 1.110 9,300 12.400 300 23610 1,340 7.100 11,700 600 20.00 eller Corporation comparative balance sheet Idollars in thousands) Assets Current annet Cash Accounts receivable, not Inventory Prepaid expense Total current at Property and equipment Land Buildings and equipment, bet Total property and equipment Total annet Liabilities and Stockholders' Equity Current liabilities Accounts payable Kecrued liabilities Notes payable, short term Total current liabilities 10,100 54,675 56.775 580,385 10,100 43160 53,260 $74,040 $20,200 940 250 21,290 538,700 740 250 19,690 MC Graw HARI 99 3 of 4 19,690 3 21,390 9.500 30,890 9,500 29,190 25 points Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity Common stock Additional paid-in capital Total paid-in capital Retained earning Total stockholders' equity Total liabilities and stockholders' equity 700 4,000 4,700 52,795 57.495 $88,385 700 4.000 4,700 10, 150 44,850 $74,040 Book H References Weller Corporation Comparative Income statement and Reconciliation (dollars in thousands) This Year Last Year Salon $75,000 $66,000 cont of goods sold 35.000 33.000 Gross Barn 40.000 33,000 Selling and administrative expenses Selling expenses 10,500 10,200 Ministrative expenses 6.600 6,200 Total selling and administrative expenses 17100 10,400 Net operating income 22,900 16,600 Interest expense 950 950 Net Income before taxes 21,950 15.650 Income taxes 8,780 5,260 Not income 13,170 9.390 Dividends to common stockholders 525 280 Net Income added to retained earnings 12,645 9,110 Beginning retained earnings 40, 150 21.040 Ending retained earnings 552,795 540, 150 Check my work 3 LAVAD Net operating Income Interest expense Net Income before taxes TOC taxes Net income Dividends to common stockholders Net Income added to retained earnings Beginning retained earninga Ending retained earnings 22,900 950 21,950 0.780 13,170 525 12,645 40,150 $52,795 EUR 16,600 950 15,650 6,260 9,390 280 9.110 31,040 $40,150 25 Bo HE 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 3. Acid-test ratio
