Check my work 3 Exercise 14-2 Financial Ratios for Assessing Liquidity (L014-2] 25 points 02:50:46 Berences 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 $0.40 this year. The market value of the company's common stock at the end of the year was $26. All of the company's sales are on account Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current aussi Cash Accounts receivable, net 7,500 Inventory 13.900 10.600 Prepaid expenses Total current assets 20, 130 Property and equipment Land 9,300 9,300 Buildings and equipment, net 40,176 Total property and equipment 53.552 49,476 Total assets $78,762 $69,606 Liabilities and stockholders' Equity Current liabilities: Accounts payable $19.000 $18, 100 Accrued liabilities Notes payable, short term 250 Total current liabilities 21.070 19,150 Long-term liabilities . . 25.110 Check my work m 290 21,070 290 19,150 9,900 30,970 9.900 29,050 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 COO 4,000 4,600 43,192 47,792 $78,762 600 4,000 4,600 35,956 40.556 $69,606 3:50:27 ook int rences Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $71.000 $64,000 Cost of goods sold 40,000 38.000 Gross margin 31,000 26.000 Selling and administrative expenses Selling expenses 10,700 10,300 Administrative expenses 6,500 6.600 Total selling and administrative expenses 17,200 16.900 Net operating income 13,800 9,100 Interest expense 990 Net Income before taxes 12,010 0.110 Incone taxes 5,124 3.244 Net income 7,686 4,866 Dividends to common stockholders 450 Net Income added to retained earnings 7,236 4,416 Beginning retained earnings 35.956 31.540 Ending retained earnings $43.192 $35.956 3 16,900 9,100 990 8. 110 Total selling and administrative expenses Net operating income Interest expense Net Income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings 17,200 13,800 990 12,810 5,124 7.686 450 7,236 35,956 543,192 2.5 points 4,866 450 4,416 31,540 $35,956 03:49:47 elook Hint 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.) Print References 1. Working cap 2. Current ratio 3. Acid-test ratio
