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 companys common stock at the end of the year was $28. All of the companys sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,280		$	1,340
Accounts receivable, net		9,700			6,700
Inventory		12,700			11,600
Prepaid expenses		630			660
Total current assets		24,310			20,300
Property and equipment:
Land		10,000			10,000
Buildings and equipment, net		41,000			38,290
Total property and equipment		51,000			48,290
Total assets	$	75,310		$	68,590
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	20,100		$	17,400
Accrued liabilities		960			720
Notes payable, short term		250			250
Total current liabilities		21,310			18,370
Long-term liabilities:
Bonds payable		8,000			8,000
Total liabilities		29,310			26,370
Stockholders' equity:
Common stock		600			600
Additional paid-in capital		4,000			4,000
Total paid-in capital		4,600			4,600
Retained earnings		41,400			37,620
Total stockholders' equity		46,000			42,220
Total liabilities and stockholders' equity	$	75,310		$	68,590

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)

This Year

Last Year

Sales

$

68,000

$

64,000

Cost of goods sold

43,000

34,000

Gross margin

25,000

30,000

Selling and administrative expenses:

Selling expenses

10,600

10,100

Administrative expenses

6,800

6,800

Total selling and administrative expenses

17,400

16,900

Net operating income

7,600

13,100

Interest expense

800

800

Net income before taxes

6,800

12,300

Income taxes

2,720

4,920

Net income

4,080

7,380

Dividends to common stockholders

300

300

Net income added to retained earnings

3,780

7,080

Beginning retained earnings

37,620

30,540

Ending retained earnings

$

41,400

$

37,620

1.	Working capital
2.	Current ratio
3.	Acid-test ratio